UPI 123Pay is a digital payment service by the National Payments Corporation of India (NPCI) that lets feature phone (basic phone) users make UPI payments without the internet or a smartphone. Launched in March 2022 in association with the Reserve Bank of India (RBI), it brings instant digital payments to the roughly 40 crore (400 million) Indians who do not use smartphones.
Its tagline says it all: “Call karo, Pay karo.” This guide explains what UPI 123Pay is, its four payment methods, the step-by-step process, transaction limits, safety, and the key facts banking aspirants need for exams like IBPS, SBI PO/Clerk, RBI Grade B, NABARD, JAIIB and CAIIB.
What Is UPI 123Pay?
UPI 123Pay is an instant payment solution for feature phone users that works without an internet connection. Before this, basic-phone users could only access UPI through the *99# (NUUP/USSD) service, which was slow and unpopular. UPI 123Pay replaced that experience with simpler voice-, app-, sound- and missed-call-based options.
- Launched: 8 March 2022 by RBI Governor (in association with NPCI).
- Developed by: NPCI, with RBI.
- Target users: ~40 crore feature phone users in India.
- Key benefit: Digital payments with no internet and no smartphone required.
- Languages: Multilingual — Hindi, English and several regional languages.
The Four Payment Methods of UPI 123Pay
NPCI built UPI 123Pay around four technology options. This list is a favourite exam question, so remember all four.
1. IVR (Interactive Voice Response) — “Call karo, Pay karo”
The user calls a pre-defined IVR number, selects a service through voice or keypad prompts, and approves the payment with a UPI PIN. The official IVR numbers are 080 4516 3666, 080 4516 3581 and 6366 200 200.
2. Missed Call
The user gives a missed call on a number displayed at the merchant location (for example, a shop or biller), receives a call back, and completes the payment by entering the UPI PIN. Useful for routine bill payments and merchant transactions.
3. App-based Functionality (OEM apps on feature phones)
A dedicated app embedded by the feature-phone manufacturer (OEM) gives a near-smartphone UPI experience. It supports most UPI functions except “Scan and Pay,” because feature phones lack camera-based QR scanning.
4. Proximity Sound-based Payments
Uses sound waves to transmit payment data between devices. The customer taps the phone on the merchant’s device (POD), a unique tone is emitted, and the payment is confirmed with the UPI PIN. (Technology partners include ToneTag/UltraCash.)
How to Use UPI 123Pay (Step by Step)
The IVR method is the most common. Here is the full flow:
- Call: Dial an IVR number (080 4516 3666 / 080 4516 3581 / 6366 200 200) from the mobile number linked to your bank account.
- Choose service: Select an option — send money, pay a bill, recharge mobile/DTH, or check balance.
- Enter details: Follow the voice prompts to add the recipient’s mobile number or details.
- Approve: Enter your UPI PIN to authorise the payment. Done!
How to Set Up UPI 123Pay (First-time Registration)
- Call the IVR number from your bank-registered mobile number.
- Select your bank; the accounts linked to it will be listed.
- Choose your account and set a UPI PIN using the last 6 digits of your debit card + OTP.
- Your UPI profile is created and ready to use. (NPCI has also enabled Aadhaar OTP-based onboarding.)
What Can You Do with UPI 123Pay?
- Send money to family and friends (person-to-person).
- Pay utility bills — electricity, gas, water.
- Recharge prepaid mobile and DTH.
- Make merchant payments.
- Check bank balance (supported by select banks).
- Link bank account and set/change UPI PIN.
UPI 123Pay Transaction Limits (Updated)
In October 2024, the RBI doubled the per-transaction limit from ₹5,000 to ₹10,000, and NPCI directed banks to comply. Always quote the latest figure in exams.
| Transaction Type | Per Transaction Limit | Per Day Limit |
|---|---|---|
| Person-to-Person (P2P) transfer | ₹10,000 | ₹10,000 |
| Merchant payments | ₹10,000 | ₹1,00,000 |
| Check balance | No limit | No limit |
Note: The earlier limit was ₹5,000 per transaction. Exact limits may vary slightly by bank as per the latest NPCI/RBI guidelines.
Important for exams: The higher UPI limits of ₹5 lakh introduced in 2025 for special categories (capital markets, insurance, education, healthcare, tax payments) apply only to regular smartphone UPI — they do not apply to UPI 123Pay, whose per-transaction limit stays at ₹10,000.
UPI 123Pay vs Regular UPI vs *99# (USSD)
| Feature | UPI 123Pay | Regular UPI (App) | *99# (USSD) |
|---|---|---|---|
| Device needed | Feature phone | Smartphone | Any phone |
| Internet required | No | Yes | No |
| Method | IVR, missed call, app, sound | App + QR scan | Menu via USSD code |
| Scan & Pay (QR) | Not available | Available | Not available |
| Authentication | UPI PIN | UPI PIN | UPI PIN |
Why UPI 123Pay Matters (Significance)
- Financial inclusion: Extends digital payments to ~40 crore feature-phone users, including rural and elderly citizens.
- No internet dependency: Works over the normal mobile network, ideal for areas with poor connectivity.
- Easy for everyone: Voice-guided and multilingual — no apps to download or tech skills required.
- Free to use: NPCI does not charge users for UPI 123Pay transactions.
- Boosts Digital India: Supports the RBI’s “Har Payment Digital” mission and deepens India’s digital payment ecosystem.
Safety and Security
- UPI PIN is mandatory for every transaction and is never shared during the call.
- Works only with your bank-registered mobile number, with two-factor authentication.
- NPCI has added Aadhaar OTP-based onboarding for extra security.
- Never share your UPI PIN or OTP with anyone, even over a call.
- If money is debited but not received, it is normally refunded; if not within ~2 working days, contact your bank.
Frequently Asked Questions (FAQs)
What is UPI 123Pay?
UPI 123Pay is an NPCI service that lets feature phone users make UPI payments without the internet or a smartphone, using IVR, missed call, app or sound-based methods. It was launched in March 2022.
Is internet needed for UPI 123Pay?
No. UPI 123Pay works over the normal mobile network, so no internet or data connection is required.
What is the transaction limit for UPI 123Pay?
The per-transaction limit is ₹10,000 (raised from ₹5,000 by the RBI in October 2024). Merchant payments can go up to ₹1,00,000 per day, while person-to-person transfers are capped lower as per the latest NPCI guidelines.
What are the IVR numbers for UPI 123Pay?
The official IVR numbers are 080 4516 3666, 080 4516 3581 and 6366 200 200. Sound-based merchant payments use 6366 200 200.
What are the four methods of UPI 123Pay?
The four methods are: IVR (call-based), missed call, app-based functionality (OEM apps on feature phones), and proximity sound-based payments.
Is UPI 123Pay free?
Yes. NPCI does not levy any charge on users for UPI 123Pay transactions.
UPI 123Pay — Practice MCQs for Bank Exams
These multiple-choice questions on UPI 123Pay are useful for IBPS, SBI PO/Clerk, RBI Grade B, NABARD, JAIIB and CAIIB. Read each question with its options, then click “Show Answer” to check.
How this topic is tested: Since the exam boards do not release official papers, these are original practice questions modelled on common exam patterns. UPI 123Pay questions usually focus on a handful of facts — the launch year (2022), the developer (NPCI/RBI), the four payment methods, the ₹10,000 limit, and the fact that it works without internet. Lock these in and you cover most of what is asked.
Q1. UPI 123Pay was launched in which year?
A) 2016 B) 2020 C) 2022 D) 2024
Show Answer
Answer: C) 2022 — launched on 8 March 2022 by the RBI in association with NPCI.
Q2. UPI 123Pay is primarily designed for which group of users?
A) Smartphone users with high-speed internet B) Feature phone users without internet C) Only merchants D) NRI account holders
Show Answer
Answer: B) Feature phone (basic phone) users who can transact without the internet.
Q3. How many payment methods does UPI 123Pay offer?
A) Two B) Three C) Four D) Five
Show Answer
Answer: C) Four — IVR, missed call, OEM app-based functionality, and proximity sound-based payments.
Q4. The current per-transaction limit for UPI 123Pay is:
A) ₹5,000 B) ₹10,000 C) ₹1,00,000 D) ₹2,000
Show Answer
Answer: B) ₹10,000 — raised from ₹5,000 by the RBI on 9 October 2024.
Q5. Which feature available on regular UPI is NOT available on UPI 123Pay?
A) Send money B) Pay bills C) Scan and Pay (QR) D) Mobile recharge
Show Answer
Answer: C) Scan and Pay (QR) — feature phones lack camera-based QR scanning.
Q6. UPI 123Pay was developed by which organisation?
A) RBI alone B) SEBI C) NPCI D) SIDBI
Show Answer
Answer: C) NPCI — in association with the RBI.
Q7. What is mandatory to approve every UPI 123Pay transaction?
A) OTP only B) UPI PIN C) Aadhaar number D) Internet connection
Show Answer
Answer: B) UPI PIN
Q8. Which technology is used in the proximity sound-based payment method?
A) NFC B) Bluetooth C) Sound waves D) Wi-Fi
Show Answer
Answer: C) Sound waves — using technology such as ToneTag/UltraCash.
Q9. Before UPI 123Pay, feature phone users could access UPI mainly through which service?
A) *99# (USSD/NUUP) B) Net banking C) IMPS D) NEFT
Show Answer
Answer: A) *99# (USSD)
Q10. The tagline associated with UPI 123Pay is:
A) “Digital India” B) “Call karo, Pay karo” C) “Har Payment Digital” D) “Faceless, Paperless, Cashless”
Show Answer
Answer: B) “Call karo, Pay karo” — note that “Har Payment Digital” is the related RBI mission, a common distractor.
Q11. Approximately how many feature phone users is UPI 123Pay intended to serve?
A) 10 crore B) 25 crore C) 40 crore D) 100 crore
Show Answer
Answer: C) ~40 crore (400 million)
Q12. Which security/onboarding feature has NPCI enabled for UPI 123Pay?
A) Face recognition B) Aadhaar OTP-based onboarding C) Fingerprint login D) Voice biometrics
Show Answer
Answer: B) Aadhaar OTP-based onboarding
Q13. By how much was the UPI 123Pay per-transaction limit raised in October 2024?
A) ₹2,000 to ₹5,000 B) ₹5,000 to ₹10,000 C) ₹10,000 to ₹50,000 D) ₹1,000 to ₹2,000
Show Answer
Answer: B) ₹5,000 to ₹10,000 — doubled by the RBI on 9 October 2024.
Q14. Which of the following is NOT one of the four UPI 123Pay payment methods?
A) IVR (Interactive Voice Response) B) Missed call C) QR code scan & pay D) Proximity sound-based payment
Show Answer
Answer: C) QR code scan & pay — feature phones cannot scan QR codes, so this is not available.
Q15. The higher UPI limits of ₹5 lakh (for capital markets, insurance, etc.) introduced in 2025 apply to:
A) UPI 123Pay only B) Regular smartphone UPI, not UPI 123Pay C) Both equally D) Only UPI Lite
Show Answer
Answer: B) Regular smartphone UPI, not UPI 123Pay — 123Pay stays capped at ₹10,000 per transaction.
Conclusion
UPI 123Pay is one of India’s most important steps toward true financial inclusion, putting instant digital payments in the hands of every basic-phone owner — no smartphone, no internet, no app needed. For exams, remember the launch year (2022), the developer (NPCI with RBI), the four payment methods, the ₹10,000 per-transaction limit, and the three IVR numbers. For everyday life, it is the simplest way to teach a parent or grandparent to pay digitally: just dial, choose, and confirm with a UPI PIN.