UPI Rules Update: The Unified Payments Interface (UPI) is now among the top choices for payments in the country. Many more digital transactions have been happening in India since it even began. Rules and changes are announced from time to time, to make UPI payments even better. Have a look at the changes so that you can make the required changes as well.
What Are the New Rules For UPI Transactions?
Deactivation of Inactive UPIs- The National Payments Corporation of India (NPCI) has announced payment apps like Paytm, Google Pay, PhonePe, and banks to disable the UPI IDs and numbers that have been inactive for over a year. UPI IDs and linked mobile numbers that haven’t been used for transactions for over 12 months will be deactivated. The aim is to curb dormant accounts and potential misuse.
Increased Transaction Limits- The National Payments Corporation of India (NPCI) has set a new maximum daily payment limit of Rs 1 lakh for UPI transactions. But the Reserve Bank of India (RBI) on December 8 increased the UPI transaction limit for education and healthcare facilities to Rs 5 lakh. Earlier, the transaction limit was Rs 1 lakh.Interchange Fee- This new change was announced in early 2023. For specific merchant UPI transactions exceeding Rs 2,000 and conducted through prepaid payment instruments (PPI) such as online wallets, an interchange fee of 1.1 percent will apply. Customers should know that they will not incur any additional costs while making transactions.
Four-time Limit- According to sources, to reduce the growing cases of online payment fraud, it is expected that there will be a four-hour time limit for the first payment exceeding Rs 2,000 between users who haven’t transacted before. Also, very soon UPI users will be able to activate the ‘Tap and Pay’ feature but there is still no official announcement yet.
UPI Atm- RBI is all set to introduce UPI ATMs nationwide. With these ATMs, users can scan a QR code to withdraw cash directly from their bank accounts. In November 2023, UPI transactions clocked a fresh peak in value hitting Rs 17.4 trillion, up 1.4 percent compared to Rs 17.16 trillion in October 2023. Simultaneously, the number of transactions reduced by 1.5 percent to 11.24 billion versus a record high of 11.41 billion a month earlier.
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