UPI friendly/antagonistic bank accounts!

[EnthuCC]

WHY were they using Savings Bank account for such high volume, high value trxns ? SB A/c is NOT MEANT for that. SB has a limit on the number of trxns in a quarter/month.

They should have opened n used a CURRENT ACCOUNT instead of SB. CA A/c - usually - doesn't have such a limit on trxns.

Why blame banks n BMs when these so-called HNIs mis-select and mis-use SB accounts ?

It's like using personal CCs for commercial n business purposes. And, crying when those CCs are blocked.

Illeterates - I can understand.
But, educated doing such mistakes ?

If there is no misappropriation of funds then number of UPI transactions shouldn't matter I guess.

For example, if a college student living as PG gets two time meal from food tiffin service then most likely he will be paying the service 30x2=60 times through UPI in a month unless there's a deal between them for paying in the end of the month.

In my personal experience, all food tiffin services asks for payment for all single deliveries.

If I count other expenses like utility payments, snacks purchases, and fuel expenses then UPI transactions in a month would cross 100 transactions easily.

It's unlikely that bank will provide him current account without any business or employment. And it's unlikely that bank will issue credit cards to students without any FD.

These Rupay based credit cards for UPI mechanism is new.
Many college students used UPI with their savings accounts like that before the launch of Rupay based UPI.

So in my opinion if there's no misappropriation of funds or no high value (business) transactions then UPI transactions volume within the established permits shouldn't render banks to freeze accounts.

 

[quino]

It's unlikely that bank will provide him current account without any business or employment.

this is the point I've been trying to highlight throughout this thread. i've been to prominent banks recently for individual current account. it's a resounding no everywhere. RBI came down heavily on banks for distributing the Individual CA during covid, so now it's become almost impossible.

it's easy to say to suggest opening a current account for normal ppl with high volume of txns, where as in reality it became almost impossible.

 

[Eye of AjayEye of Ajay is verified member.]

@Eye of Ajay

Not withstanding what you tried to justify, these guys using SB accounts is incorrect.
Neither the customers nor that joker-agent knew the suitability of the various products. Probably, that agent got to fulfill his quota.

It is wrong to say that individuals can not open Current Accounts.

In addition to SB accounts, my wife and I also have Current Accounts with SBI.

Justifying the advantages of UPI will - in no way - justify using SB in place of CA for business transactions.

I see nothing wrong in those Bankers blocking the relative SB accounts.

Can certainly tell you beyond a shadow of a doubt that without proper justification "Solo-Prop,Etc" a current account "Individual" shall not be opened by any bank now a days due to RBI notification on disciplinary action. The earlier systems do not apply to the new age banking anymore as per such infact if your better half is not using said account for business usage it should be ideally reviewed after a period of each quarter.

As everyone said, just open a current account with any bank and you won't face such problems.

Same as above

 

[quino]

infact if your better half is not using said account for business usage it should be ideally reviewed after a period of each quarter.

it's SBI. unless the system really throws a big red flag it'll be fine. not like private banks, where nothing & everything can get ur account freezed.

 

[panchabhut]

If there is no misappropriation of funds then number of UPI transactions shouldn't matter I guess.

For example, if a college student living as PG gets two time meal from food tiffin service then most likely he will be paying the service 30x2=60 times through UPI in a month unless there's a deal between them for paying in the end of the month.

In my personal experience, all food tiffin services asks for payment for all single deliveries.

If I count other expenses like utility payments, snacks purchases, and fuel expenses then UPI transactions in a month would cross 100 transactions easily.

It's unlikely that bank will provide him current account without any business or employment. And it's unlikely that bank will issue credit cards to students without any FD.

These Rupay based credit cards for UPI mechanism is new.
Many college students used UPI with their savings accounts like that before the launch of Rupay based UPI.

So in my opinion if there's no misappropriation of funds or no high value (business) transactions then UPI transactions volume within the established permits shouldn't render banks to freeze accounts.

for such needs, wallet based UPI, like Amazon wallet UPI and Slice UPI, is the best option. Bajaj Fin wallet UPI also works, but their app is designed to always try to fool the user into clicking loan applications, so not recomended.

 

[quino]

for such needs, wallet based UPI, like Amazon wallet UPI and Slice UPI

how do you plan on loading them? for that also UPI is needed.

also, slice will freeze for sure, even if you have half of such volume.

and overall, ppi wallets aren't built to handle such volumes. they will block your account.

 

[panchabhut]

how do you plan on loading them? for that also UPI is needed.

also, slice will freeze for sure, even if you have half of such volume.

and overall, ppi wallets aren't built to handle such volumes. they will block your account.

For loading 1 to 4 txn in a mth is required from main acct, depending on the load frequency, i.e. mthly/fortnightly/weekly. I regularly do 4-5 txn small daily via Amz wallet UPI (full KYC) and 2-3 small txn daily via Slice UPI. My total small txn in a mth is between 150-180.

 

[quino]

For loading 1 to 4 txn in a mth is required from main acct, depending on the load frequency, i.e. mthly/fortnightly/weekly. I regularly do 4-5 txn small daily via Amz wallet UPI (full KYC) and 2-3 small txn daily via Slice UPI. My total small txn in a mth is between 150-180.

not the no. see the amounts OP has mentioned.

 

[EnthuCC]

for such needs, wallet based UPI, like Amazon wallet UPI and Slice UPI, is the best option. Bajaj Fin wallet UPI also works, but their app is designed to always try to fool the user into clicking loan applications, so not recomended.

The wallet companies you've mentioned are private 3rd party Fintech companies. Their role is enabler of finance transactions but they're not the banks.

Remember pre-UPI era where you used to carry cash and made personal expenses to vegetable vendors, milkman, autowalla or taxiwalla, snacks vendor, grocery purchase, petrol or diesel expenses, and parking fees. There expenses happened on daily basis and they are all personal expenses.

You can include occasional expenses like movie or event tickets, stationary items purchases, purchase of medicines and expenses in restaurants and hotels.

These all transactions very frequent, and personal, and happened in hard cash.

Would these all transaction be identified as business transactions so one could use current account for multiple transactions? If one uses current account to do these all transactions then they will be identified as business transactions and you would have to get receipts of each transaction for tax purposes.

That's silly in my opinion.

If the govt. and banks want to digitize economy then they HAVE to allow multiple transactions through UPI to replace all these pre UPI cash transactions for all of these personal transactions - with or withour any Rupay credit credit and through Savings Account.

Banks are already levying charges on almost all kinds of services for example on transactional SMS charges too. And their interest rates haven't gone up even after RBI increased repo rate.

 

[MrJJ]

Good discussion...

As @panchabhut said

for such needs, wallet based UPI, like Amazon wallet UPI and Slice UPI, is the best option.

I think UPI Lite was also launched to address this issue. You can load upi lite upto ₹2000 and do small transactions with it.

 

[panchabhut]

The wallet companies you've mentioned are private 3rd party Fintech companies. Their role is enabler of finance transactions but they're not the banks.

Remember pre-UPI era where you used to carry cash and made personal expenses to vegetable vendors, milkman, autowalla or taxiwalla, snacks vendor, grocery purchase, petrol or diesel expenses, and parking fees. There expenses happened on daily basis and they are all personal expenses.

You can include occasional expenses like movie or event tickets, stationary items purchases, purchase of medicines and expenses in restaurants and hotels.

These all transactions very frequent, and personal, and happened in hard cash.

Would these all transaction be identified as business transactions so one could use current account for multiple transactions? If one uses current account to do these all transactions then they will be identified as business transactions and you would have to get receipts of each transaction for tax purposes.

That's silly in my opinion.

If the govt. and banks want to digitize economy then they HAVE to allow multiple transactions through UPI to replace all these pre UPI cash transactions for all of these personal transactions - with or withour any Rupay credit credit and through Savings Account.

Banks are already levying charges on almost all kinds of services for example on transactional SMS charges too. And their interest rates haven't gone up even after RBI increased repo rate.

In good old days, we kept our money in bank and then withdrew cash (3/4000) and put it in our wallet/pocket and paid small changes to vegetable vendors, milkman, autowalla or taxiwalla, snacks vendor, grocery purchase, petrol or diesel expenses, and parking fees.
Now these 3rd party fintech are providing digital wallets, where we can digitally transfer from bank in lumpsum (3/4000) and then pay small changes digitally to vegetable vendors, milkman, autowalla or taxiwalla, snacks vendor, grocery purchase, petrol or diesel expenses, and parking fees.
The 3rd party fintechs are just replacing our leather wallets, the banks remain as they were.

 

[Trust Me]

1. Indusind Bank:- Total Freeze customer H.N.I. and has a pioneer account...................... ........................................................................... The number of UPI transactions exceeded 300 per month and was always of an mid-heavy amount "15000-90000"

In response to the above quote, my comment was:

You're talking > 300 transactions per month. i.e. > 10 transactions per day on an average. At 15k to 90k per transaction this would translate to a total exceeding 1.5 L to 9 L per day!!! .... Now what are those daily UPI transactions limits again?!
.

To which you responded with:

That is a range I did not say he does 90k x 10 transactions its mix and match but genrally the high amounting transactions are 15-90k range plus other in a day.

Do you notice the discrepancy between your original post and the later claim quoted above?!

..... I rest my case!
.

 

[Eye of AjayEye of Ajay is verified member.]

In response to the above quote, my comment was:



To which you responded with:



Do you notice the discrepancy between your original post and the later claim quoted above?!

..... I rest my case!
.

First of all this is not the court of law that you are arguing semantics, secondly what I meant was what I wrote mid-high value UPI was included almost always. You are free to rebuddle as much as you want but the whole point of this thread is rather to gain knowledge rather than to belittle people.

In good old days, we kept our money in bank and then withdrew cash (3/4000) and put it in our wallet/pocket and paid small changes to vegetable vendors, milkman, autowalla or taxiwalla, snacks vendor, grocery purchase, petrol or diesel expenses, and parking fees.
Now these 3rd party fintech are providing digital wallets, where we can digitally transfer from bank in lumpsum (3/4000) and then pay small changes digitally to vegetable vendors, milkman, autowalla or taxiwalla, snacks vendor, grocery purchase, petrol or diesel expenses, and parking fees.
The 3rd party fintechs are just replacing our leather wallets, the banks remain as they were.

While you are quite correct the 3rd party fintechs/wallets have reverse penetration of the market since after the paytm fiasco. Now a days people prefer bank attached doohickey. Additionally money retention of below 5lac for SFB and normal amount for FFB's this shows the public's money storage patterns. Additionally additionally banks are running low of CASA so everyone has a golden opportunity to bully them into CC's, etc in lieu of CASA right now.

 

[Trust Me]

First of all this is not the court of law that you are arguing semantics, secondly what I meant was what I wrote mid-high value UPI was included almost always. You are free to rebuddle as much as you want but the whole point of this thread is rather to gain knowledge rather than to belittle people.

I'm not trying to belittle anyone. I just quoted what you yourself wrote, and responded to it. Your unfortunate choice of words somehow appeared to me as hyperbole, rather than just an attempt to spread knowledge!

Rather than allowing for the scope of misunderstanding (because you "meant" almost always while writing just "always"), and moving on, you preferred to go on the defensive!

Anyway, let's not drag this on any more.

.... Here is hoping for a better choice of words in future while attempting to spread knowledge (if only in order to avoid misunderstanding) ...
.

 

[panchabhut]

While you are quite correct the 3rd party fintechs/wallets have reverse penetration of the market since after the paytm fiasco. Now a days people prefer bank attached doohickey. Additionally money retention of below 5lac for SFB and normal amount for FFB's this shows the public's money storage patterns. Additionally additionally banks are running low of CASA so everyone has a golden opportunity to bully them into CC's, etc in lieu of CASA right now.

Did not get your point. My comment was specifically regarding that Bank linked UPI was never meant to pay small changes digitally to vegetable vendors, milkman, autowalla or taxiwalla, snacks vendor, grocery purchase, petrol or diesel expenses, and parking fees. For such payments, digital wallets exist. Bank linked UPI is for bigger payments. Thats why there has always been the concept of "Cash" and "Petty Cash" in business parlance and accounting. When we try to use our Bank account as also our pocket wallet, then problems are bound to arise.
One should also not use Bank linked UPI to all and sundry as a matter of security, as it exposes the bank account to possibility of frauds.

 

[kilroyabhi]

Yes Bank : Blocked my account three times as I was not able to attend to call for confirmation of transaction (driving after payment). Took multiple mails, request to manager to reactivate account