New Regulations In UPI Transactions, Check Out 5 Changes

In 2024, UPI has undergone significant rule changes, ushering in key modifications to enhance the online banking and payment transactions

The Unified Payments Interface (UPI), a rapid and widely adopted mode for instant money transfers via mobile devices, has emerged as the fastest-growing payment method in the country. The volume of digital transactions in India has witnessed remarkable growth since its inception. To further broaden the scope of UPI payments, the Reserve Bank of India (RBI) has introduced measures and changes that are applicable from January 1, 2024.

Inactive UPIs Face Deactivation: The National Payments Corporation of India (NPCI) has instructed payment apps such as Paytm, Google Pay, PhonePe, and banks to deactivate UPI IDs and associated numbers that have been inactive for more than a year. In an effort to prevent dormant accounts and potential misuse, UPI IDs and linked mobile numbers unused for transactions for over 12 months will be deactivated. Enhanced UPI Transaction Limits: NPCI has introduced a higher daily payment limit of Rs 1 lakh for UPI transactions. In a recent development, on December 8, the RBI raised the UPI transaction limit specifically for education and healthcare facilities to Rs 5 lakh. Earlier, the transaction limit was Rs 1 lakh. Interchange Fee: As of early 2023, a notable change has been implemented. For specific merchant UPI transactions surpassing Rs 2,000 and carried out using prepaid payment instruments (PPI) like online wallets, a 1.1 percent interchange fee will be applicable. It's important for customers to be aware that there will be no additional costs incurred during these transactions. Also Read: Transporters, Drivers Protest Against New Law On Hit-And-Run Cases In Various Cities Four-hour Time Limit on Large Transactions: In a bid to combat the rising instances of online payment fraud, there are reports suggesting the introduction of a four-hour time limit for the first payment exceeding Rs 2,000 between users who haven't conducted transactions previously. It is anticipated that UPI users will soon have access to activate the 'Tap and Pay' feature, although an official announcement is still pending. RBI to Roll Out Nationwide UPI ATMs: The Reserve Bank of India (RBI) is gearing up to introduce UPI ATMs across the country. These ATMs will allow users to scan a QR code to directly withdraw cash from their bank accounts. In November 2023, UPI transactions reached a new peak in terms of value, totaling Rs 17.4 trillion, marking a 1.4 percent increase from the Rs 17.16 trillion recorded in October 2023. However, the number of transactions decreased by 1.5 percent to 11.24 billion compared to the record high of 11.41 billion the previous month. Also Read: After Ladakh, Indian Army To Deploy Apache Attack Helicopters Near Pak Border

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