NPCI orders banks to stop UPI transactions from apps that are not complying with its directive

The BHIM app. Image: NPCI[/caption]According to a report by Business Standard, as per the NPCI directive, all UPI apps must have the support for sending or receiving money through virtual payment address or VPAs, generate QR codes and accept payments by scanning and respond to intent calls on the same phone. The report says that this is being done to increase interoperability between apps on the UPI platform.As per an earlier report by the same publication stated that as high as 15 percent of UPI transactions are failing with money being stuck between banks with no recourse available. The circular sent by the NPCI stated a 16 April deadline for all UPI apps to comply after which "NPCI reserves the rights to decline the transactions for such non-compliant apps.”Srikanth Lakshmanan, founder of Cashless Consumer, a public education initiative on banking and digital payments said in an interview with Business Standard “In the absence of public failure rates, poor grievance mechanism support across UPI apps, NPCI circular giving permission to PSPs to decline transaction as they deem fit on transactions initiating from non-compliant apps is dangerous. NPCI, In allowing PSPs to decline transactions, shows disregard for consumers as consumers need to know if their apps are compliant before transacting to minimize failure chances.”