As we step into the new year, significant modifications in UPI (Unified Payments Interface) rules are set to enhance your online banking and payment experiences. Here’s a concise breakdown of the five key changes you should be aware of:
Inactive UPI IDs:
The National Payments Corporation of India (NPCI) has mandated payment apps, such as Google Pay and PhonePe, to deactivate inactive UPI IDs after one year. Users are urged to verify and ensure the activity of their UPI IDs, also checking associated phone numbers for inactivity.
‘UPI for Secondary Market
NPCI is set to launch ‘UPI for Secondary Market’ in its Beta phase. This collaborative effort involves key stakeholders, allowing limited pilot customers to block funds, debited upon trade confirmation during settlement. Payouts will be processed by Clearing Corporations on a T 1 basis.
Increased Transaction Limit for Specific Sectors:
The Reserve Bank of India (RBI) has raised the UPI transaction limit for hospitals and educational institutions from ₹1 lakh to ₹5 lakh. This change, following a monetary policy committee meeting, facilitates higher online payments for education and healthcare purposes.
Introduction of UPI ATMs:
RBI plans the nationwide introduction of UPI ATMs, enabling cash withdrawal by scanning a QR code. Hitachi Payment Services has already introduced ‘the country’s first-ever UPI-ATM’ as a White Label ATM (WLA) in association with NPCI.
Time Limit for First Payments to New Recipients:
RBI proposes a 4-hour time limit for users making first payments over ₹2,000 to new recipients. This window allows users to reverse or modify transactions initiated with someone they haven’t transacted with before, adding an additional layer of control and security.
In conclusion, these rule changes in UPI payments bring forth enhanced security measures, increased transaction limits for crucial sectors, and innovative features like UPI ATMs. Stay informed and make the most of these updates as you continue your online banking journey in 2024.
