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NPCI bans money transfers within same account to curb fake transactions for cashback

23 July, 2018 6:23 AM
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NPCI bans money transfers within same account to curb fake transactions for cashback

From August 1, money transfer within same account or UPI ID — where the payer and the payee account are actually the same — will be blocked by NPCI

National Payments Corporation of India (NPCI) has decided to stop all digital payments within the same account from its UPI platform in order to curb fake or artificial transactions done to get cashbacks.

From August 1, money transfer within same account or UPI ID — where the payer and the payee account are actually the same — will be blocked by the umbrella organization, the payment regulator directed the banks in a circular, reports The Economic Times.

As per the NPCI, the practice has been banned because of three types of money transfer — transactions being done between same UPI accounts, payments made from the UPI ID to the account number, but the underlying account remains the same, and sending money to another UPI ID but connected to the same bank account.

The prime reason behind the clampdown is to stop customers who make transactions within their account from getting cashback offers.

Source: moneycontrol.com

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