India’s BFSI (Banking, Financial Services, and Insurance) sector is considered one of the core industries laying the foundation of the million to billion-dollar economic landscape conferring financial goods and services. Withstanding the financial nature of the sector, it also manages the brokerages and assets circulated in the Indian economy. 

The essential services covered by the BFSI sectors include: 

• Retail services 
• Banking
• Private 
• Corporate
• Credit and debit cards services
• Investment
• credit /debit cards
• Stock-broking
• Mutual funds 
• Payment Gateways
• Insurance covers 

As per the market estimation, the India-based BFSI sector has been valued at Rs. 81 trillion, ranking amongst the top in the charts in 2020. It is also probable that the valuation will increase at an impressive rate, ranking as the third-largest sector by the year 2025.  

What is contributing to these whopping statistics and the success of the BFSI sector of India?

The answer to this most deliberated topic lies in the source which is powering payments for these brokerages and fund houses. The established Indian Securities and companies in the investment unit majorly rely on the UPI transactions carried forward by the people. The UPI transaction limit per day by the customers (whether acceptance of payments or transfer of funds) will decide the returns for the BFSI sector. 

Due to which many banking and financial sector companies like Zerodha, ET Money, Groww, Upstox, Sharekhan, and Axis Securities are offering Razorpay UPI transaction limit per day to their customers catering to the rising demand.

UPI: The Game Changer 

Unified Payments Interface is a process of paying instantly the beneficiary with no interruptions involved within an encrypted sphere. It was launched by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India. Listed below are the ways through which UPI has evolved as a game-changer in developing and conditioning the scenario of India’s BFSI sector.  

1. Ascertained pricing 

Using the regular card or net banking system, the merchant will have to pay at least 2% or an additional INR 10 on every transfer of funds. However, the case is entirely different from the UPI startup. The transaction is absolutely free of cost as per the provision of MDR (Merchant Discount Rate) implied by the Government of India. 

2. Fixed transaction limit to avoid ambiguity

The UPI transaction limit per day is fixed by the RBI and banks to avoid leaks or disruptions. The fixed limit is INR 2 Lacs. Earlier the RBI kept the UPI transaction limit per day to INR 1 Lac only. Gradually, this extension was granted in order to ensure that the customers use UPI to deal with the mutual funds and investments in stocks. 

3. Account Confirmation by TPV using UPI

Third-Party Validation (TPV) is a confirmation that ensures that the customer is doing a financial transaction with a pre-registered and verified bank account. In case the payments are initiated, the system will automatically refund all the money back to the payer’s account with immediate effect. Razorpay, the UPI mode of payment with an attached TPV facility, is backed with SEBI assent. 

4. Robust coverage on transactions 

UPI transaction limit per day is carried forward and endorsed by the 200+ banks (private and public sector) in India. Despite an integrated coverage of TPV functionality by the banks, it was difficult to carry the same intensity of coverage on every transaction. With the advent of the UPI system, the role of net banking has dipped at a tremendous rate. Click now to learn more.

5. UPI AutoPay for SIP or EMI collection

The latest scheme launched by the administrative body, NPCI aims to help business ventures to deal with the recurring payments effortlessly using UPI. Using this facility, the customers can offer a recurring mandate to prospective businesses. This will help them debit their SIP or EMI collection with no discrepancies. As per the Third-Party Validation feature, enterprises can withdraw up to a threshold amount of INR 5,000 for every transaction. In turn, making UPI an easier alternative to traditional credit card transactions. 

The Final Verdict 

The UPI transaction limit per day of two lakhs can be carried through a comprehensive user interface and productive tools to make the process easier and coherent. The UPI offers Intent/QR flow/Collec that can be used to complete payments at all devices (iOS as well). Moreover, there is no need to keep in handy the card details or enter OPT, your UPI pin is all you need for making payments. 

The UPI has served to be an all-in-one package for making financial transactions effectively. By offering some amazing schemes and perks, a major chunk of the population is attracted and engrossed to adhere to the UPI mode of payment and transactions. This in turn had reflected massive scalability in the BFSI sector of India.