When Do BHIM UPI Transactions Get Declined?

Launched on 30th December 2016, BHIM (Bharat Interface for Money) is an integral part of the payment system in India. The BHIM UPI app was launched by the NPCI (National Payments Corporation of India) with an aim to ease the e-payment process and promote a cashless economy. We all use BHIM UPI to make e-payments every day. However, there may be situations when the payment doesn’t get through, and your transaction gets declined.

A decline in BHIM transactions may happen due to multiple reasons. This decline makes it difficult to make payments right on-time and may even land you in penalty trouble. It is important to get a gist of what causes rejection in the transaction. In this blog, we are going to discuss all the possible causes in detail. But before jumping to it, let us first understand more about BHIM UPI.

What is BHIM UPI?

Bharat Interface for Money or BHIM UPI is an application that allows you to make payments via standard UPI. One can use BHIM UPI by simply scanning the QR code or using a specific UPI ID. BHIM UPI was developed by NPCI in 2016 to shift the Indian economy towards a digitally empowered society. The BHIM UPI app is seamlessly interoperable with UPI apps and other banks. It only requires using a VPA (Virtual Payment Address), which would give you an inclusive and ready-to-print QR code.

BHIM UPI also allows you to send and receive money from non-UPI banks by using MMID (Mobile Money Identifier) and IFSC code. The transaction limit of BHIM UPI is set at a maximum of Rs. 10,000 per individual transaction and Rs. 20,000 within a 24-hour period. For USSD (Unstructured Supplementary Service Data) and the current daily limit is set at Rs. 5,000. BHIM UPI is available for use in both Hindi and English language, making it accessible to people from all walks of life.

How to Send Money via BHIM UPI?

Sending and receiving money via BHIM UPI is easy. A user can send money via BHIM UPI by using the following details of the receiver:

• VPA (Registered on UPI)
• Mobile Number (Registered on UPI)
• Account Number and IFSC code

One can use any of the above methods and follow the steps advised in the UPI app to make a successful transaction. However, there are times when your transaction may fail or decline. Read on to find out the probable causes for so.

When Does Your BHIM UPI Transaction Decline?

• Bank server error- The most common reason why your BHIM UPI transaction may decline is due to a temporary bank server downtime. In such cases, you must wait for some time and try again to proceed with your transaction.
• Fraudulent transaction- Sometimes, your BHIM UPI transaction may be flagged as a potential case of fraud, which may lead to a decline from PSPs (Payment Service Providers).
• Incorrect UPI PIN- The UPI PIN you entered may be incorrect, leading to a decline in transactions. Therefore it is vital to ensure that your entered UPI PIN is correct.
• Incorrect beneficiary details- Entering the wrong beneficiary details could be another reason for failed BHIM UPI transactions. If your UPI ID, account number, etc., is incorrect, your transaction is likely to get declined.
• Mobile number linked to multiple accounts- If your mobile number is linked with multiple accounts in the same bank, it can also lead to a decline in transactions. In situations like these, you must contact your bank for resolution.
• Delay in updating mobile number- If you have recently changed your linked mobile number, it might be possible that your bank hasn’t updated it. It can cause your BHIM UPI transaction to decline. You must contact your bank for assistance in such a case.
• Violation of bank’s policy- If the transaction you attempt to complete goes against your bank’s policies, it may be declined. You must contact your bank for clarification in such situations.

Features of BHIM UPI

BHIM UPI allows you to access various features like:

• Money transfers: With BHIM UPI, one can send and receive money from customers, relatives, or friends by simply using their UPI-registered mobile numbers.
• Balance inquiry: The BHIM UPI app allows you to check your account balance, transaction data and other details at your convenience.
• Customised payment address: BHIM UPI users have the flexibility to customise their payment address in addition to their registered phone number.
• QR code payments- BHIM UPI lets you use the QR code functionality, enabling you to easily scan QR codes for making payments. Merchants can display their QR codes to facilitate convenient transactions.
• Aadhaar-based payments- BHIM UPI also allows you to make payments via Aadhar card, where you send and collect payments using Aadhar authentication, making it secure and convenient.

Conclusion:

BHIM UPI is one of the most preferred payment platforms in India, launched by NPCI in 2016 to enhance the financial inclusivity of the country. The BHIM UPI app allows users to send and receive money easily by using their registered VPA, mobile number, account number or IFSC. However, while transacting money, you must also be aware of all the reasons that can lead to a decline in BHIM UPI transactions. Do cross-check the details you enter while making a transaction. After assessing all the reasons discussed above, you can easily examine why any BHIM UPI transaction failure may have happened.