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NPCI bans UPI transaction within same account from August 1st

National Payments Corporation of India (NPCI) is all set to ban all payments within the same account from its Unified Payments Interface (UPI) platform inorder to tackle with fake and artificial payments made to receive cashbacks.

From August 1st,
all such payments will be blocked by the payment regulator, according to a circular issued to banks. NPCI's circular reads as " While analyzing the transaction patterns we have observed instances wherein both credit and debit accounts are same...customers are sending money from their account to the same account...these transactions do not serve any use case and also add unnecessary load on the system,"

Transactions between the same UPI accounts, payments made from a UPI ID to a bank account registered to the same UPI ID, and transactions between different UPI IDs connected to the same bank account are said to be banned by NPCI.

The primary reason for banning such transactions is the rising number of fake or artificial transactions being made by customers greedy for cashbacks.
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