One of them said that banks which currently take more than 24 hours to unblock funds stranded due to failed UPI transactions, will be able to do so in less than 30 seconds.
“NPCI is working on a system that will allow banks to know whether the money debited has been credited to the receiver or not; all this can be done in less than 30 seconds and the money can be refunded. is,” said the person, who is directly involved in the conversation.
NPCI did not respond to an email seeking comment.
State Bank of India, the largest remittance bank on the UPI platform, had a debit reversal success rate of 84.61% in June as against 98.92% in June.
, the second largest sender network on the platform. Over 1.62 billion UPI transactions were processed by HDFC Bank as compared to around 530 million.
“As of now, the approach to handle failed transactions has been to wait for account details from the counterparty bank, which is a 24-hour process,” it said. Deepak GuptaJoint Managing Director,
, “If it is proved that you have been wrongly debited, the blocked funds will be released to your account.”
There are two types of failures in UPI payments – technical glitches and business failures. While technical fallout occurs due to bank or NPCI system issues, business drop occurs due to customer related reasons such as wrong passcode entry or transactions exceeding the prescribed limit.
In terms of technical downside, SBI saw TD rates of 0.08% versus HDFC Bank’s 5.06%. SBI recorded a decline of 6.96 per cent in business, while it was 5.48 per cent for HDFC Bank.
A typical peer-to-peer UPI transaction involves exchange of real-time information between the sending bank and the sponsor bank’s servers, NPCI’s servers and the beneficiary account on the UPI network. For merchant transactions, the flow becomes even more complicated with an additional settlement layer.
According to NPCI data, in July, UPI recorded the highest monthly transaction ever since its inception in 2016 – over 6.28 billion transactions worth ₹10.62 lakh crore.
During June, transactions were up 7.16% in volume and 4.76% in value. In July last year, trading volume nearly doubled, while the value increased by 75%.