
5 major changes in UPI

Publisehed: 2024-01-04 09:00:00
As we enter a new year, it’s important to stay up to date with the latest developments in online banking and online payment transactions.
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With this in mind, let’s take a look at the new UPI rules that have recently been implemented to enhance the overall online banking and transactions experience.
The new rules aim at making online transactions safer and more efficient, so that people can complete their transactions with confidence and assurance.
In order to enhance the security of the platform, the RBI has put in place a number of measures that will enter into force on 1 January 2024.
- Increased limit for Hospitals & Educational Institutions: The Reserve Bank of India (RBI) has increased the limit per transaction for payments to hospitals & educational institutions from Rs. 1 lakh to Rs. 5 lakh. This makes it easier to pay large fees such as college fees or hospital bills.
- 4-hour limit: In order to ensure the security of UPI transactions, the Reserve Bank of India (RBI) has proposed a 4-hour limit for initiating first payments to new recipients of Rs. 2,000 or more. This limit has been introduced to provide more control and security to users, as it allows them to reverse or adjust transactions within the given time limit.
- Deactivation of inactive UPI IDs: The National Payments Corporation of India (NPCI) has asked payment apps to unuse UPI IDs which have not been used for more than one year. The aim is to reduce fraudulent accounts and simplify data management.
- UPI ATMs and Tap-and-Pay: The National Payments Corporation of India (NPCI) is exploring futuristic features such as UPI cash withdrawals via QR codes from ATMs and UPI contactless payments through phone tapping. While these features are not yet confirmed, they could further broaden the scope of UPI.
- UPI for Secondary Market (Beta Phase): This pilot program enables the blocking of funds after trade confirmation and settlement payments through Clearing Corporations via UPI. This has the potential to revolutionize securities trading settlements.