Top News

As the dependence on digital transactions is increasing, the number of transactions on the Unified Payments Interface (UPI) is also increasing. But with this, UPI has started facing frequent interruptions. You too must have faced this in UPI transactions.

The good news is that the National Payment Corporation of India (NPCI) has become strict. It has issued 10 guidelines related to UPI Application Programming Interface (API) to the banks, which have to be implemented before July 31. APIs are protocols that enable secure data exchange between the banking system and the UPI network.

What instructions did NPCI issue related to UPI API?

According to the news of the English newspaper Business Standard, NPCI has asked UPI payment service providers and banks to monitor the use of its APIs and use them sparingly. Apart from this, NPCI has also directed to impose a rate limit on the number of API calls.

This step was taken after an analysis done last month, which found that banks sent so many API calls like "check transaction status" that the system started going down. The circular states that for not following these guidelines, NPCI can take steps like a UPI API ban, penalty, or suspension of onboarding of new customers on the concerned payment service provider or bank.

UPI members and their partners will have to implement these guidelines by July 31. Earlier, last month also issued circulars to reduce the response time for four APIs and prevent their misuse.

According to experts, NPCI wants to reduce the pressure on the UPI system with these measures. So that the problem of frequent UPI going down can be avoided. However, to do this, banks and UPI service providers will have to make changes in their system.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.