UPI Tap and Pay Facility

• Context (HT): NPCI begins deployment of UPI Tap and Pay Facility for payments apps.

• The UPI Tap and Pay feature leverages the Near Field Communication (NFC) capability in smartphones, allowing users to make on-the-go payments without the need to scan a QR code.
• It can be accessed only on phones or devices that have NFC capability.

NFC ensures a secure connection within a 4 cm distance, making it an ideal technology for UPI transactions.

Transaction Limits

• Users can initiate transactions of up to Rs 500 at a time, with a daily cap set at Rs 4,000.
• For purchases under Rs 500, users of UPI Lite can tap their phones against a UPI Smart Tag or UPI Smart QR without entering a UPI PIN.
• For transactions exceeding Rs 500, users will be required to input their PIN after tapping their device.

National Payment Corporation of India (NPCI) NPCI is an umbrella organization for operating retail payment settlement systems in India. NPCI was established jointly by the RBI and the Indian Bank’s Association (IBA) under the Payment and Settlement Systems Act of 2007 to create a robust Payment & Settlement Infrastructure in India. NPCI is registered as a non-profit organisation under the Companies Act of 2013.