UPI New Rules: 5 Major Changes Effective from January 1, 2024

Khushboo Joshi

2024/01/04 17:04:07 IST

www.topindiannews.com

Bringing in a revolution

In the ever-evolving landscape of digital transactions in India, the Unified Payments Interface (UPI) has emerged as a frontrunner, revolutionising the way payments are made.

Credit: Pexels

New rules and regulations by RBI

The Reserve Bank of India (RBI) has introduced new regulations and adjustments w.e.f. January 1, 2024. Here are the five major changes that users need to be aware of:

Credit: Flickr

UPI ATM Rollout Across the Country

The RBI has announced plans to introduce UPI ATMs nationwide. These ATMs will enable users to withdraw cash directly from their bank accounts by scanning a QR code.

Credit: Flickr

Restriction for First Payments Above Rs 2,000

A four-hour time restriction will be implemented for the first payment above Rs 2,000 between customers who have never transacted before.

Credit: X

Tap & Pay

Additionally, UPI members will soon have access to the Tap and Pay functionality, providing a convenient and secure payment option.

Credit: Pexels

Interchange Fees for Merchant UPI Transactions

For specific merchant UPI transactions exceeding Rs 2,000 and utilising prepaid payment instruments (PPI) like online wallets, an interchange fee of 1.1 percent will be imposed.

Credit: Pexels

Increased Transaction Limits with Exceptions

The National Payments Corporation of India (NPCI) has set a new maximum daily payment limit of Rs 1 lakh for regular UPI transactions. However, exceptions have been made for healthcare and educational institutions, with an increased UPI transaction limit to Rs 5 lakh.

Credit: Pexels

Deactivation of Inactive UPI IDs

In a proactive move to enhance security and streamline the UPI ecosystem, the NPCI has directed payment applications and banks, including Paytm, Google Pay, PhonePe, & others, to deactivate UPI IDs & numbers that have remained inactive for more than a year.

Credit: Pexels

India towards a cashless economy

As India continues its journey towards a cashless economy, these new UPI regulations play a pivotal role in shaping a more secure, efficient, and user-centric digital payment ecosystem.

Credit: Pexels

UPI New Rules: 5 Major Changes Effective from January 1, 2024

Bringing in a revolution

In the ever-evolving landscape of digital transactions in India, the Unified Payments Interface (UPI) has emerged as a frontrunner, revolutionising the way payments are made.

New rules and regulations by RBI

The Reserve Bank of India (RBI) has introduced new regulations and adjustments w.e.f. January 1, 2024. Here are the five major changes that users need to be aware of:

UPI ATM Rollout Across the Country

The RBI has announced plans to introduce UPI ATMs nationwide. These ATMs will enable users to withdraw cash directly from their bank accounts by scanning a QR code.

Restriction for First Payments Above Rs 2,000

A four-hour time restriction will be implemented for the first payment above Rs 2,000 between customers who have never transacted before.

Tap & Pay

Additionally, UPI members will soon have access to the Tap and Pay functionality, providing a convenient and secure payment option.

Interchange Fees for Merchant UPI Transactions

For specific merchant UPI transactions exceeding Rs 2,000 and utilising prepaid payment instruments (PPI) like online wallets, an interchange fee of 1.1 percent will be imposed.

Increased Transaction Limits with Exceptions

The National Payments Corporation of India (NPCI) has set a new maximum daily payment limit of Rs 1 lakh for regular UPI transactions. However, exceptions have been made for healthcare and educational institutions, with an increased UPI transaction limit to Rs 5 lakh.

Deactivation of Inactive UPI IDs

In a proactive move to enhance security and streamline the UPI ecosystem, the NPCI has directed payment applications and banks, including Paytm, Google Pay, PhonePe, & others, to deactivate UPI IDs & numbers that have remained inactive for more than a year.

India towards a cashless economy

As India continues its journey towards a cashless economy, these new UPI regulations play a pivotal role in shaping a more secure, efficient, and user-centric digital payment ecosystem.

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