BUSINESS

UPI New Regulations Effective Today: Understand Modifications That Take Effect on January 1, 2024

UPI New Rules 2024: One of the most popular options for making payments in the nation right now is the Unified Payments Interface (UPI). India has seen a significant increase in the number of digital transactions since it started. The Reserve Bank of India (RBI) has agreed on additional regulations and adjustments that will take effect on January 1, 2024, to further improve UPI payments.

Beginning on January 1, 2024, a number of significant laws and regulations pertaining to UPI transactions were passed. A list of the most significant ones is provided below:

Inactive UPIs are deactivated:

Payment applications such as Paytm, Google Pay, PhonePe, and banks have been requested by the National Payments Corporation of India (NPCI) to deactivate UPI IDs and numbers that have not been used for more than a year.

If a UPI ID or associated mobile phone isn’t used for transactions for more than a year, they will be terminated. This is an attempt to prevent unused accounts.

Higher Transaction Limits:

For UPI transactions, the NPCI has established a new maximum daily payment limit of Rs 1 lakh.

On December 8, however, the RBI raised the UPI transaction limit to Rs 5 lakh for healthcare and educational institutions. The previous transaction limit was one lakh rupees.

Exchange Charge:

An interchange fee of 1.1 percent would be charged for particular merchant UPI transactions above Rs 2,000 that are made using prepaid payment instruments (PPI) such online wallets.

Four-hour Time Restriction:

There will be a four-hour time restriction for the first payment above Rs 2,000 made between customers who have never transacted previously in an effort to curtail the rising number of incidents of online payment fraud. Members of UPI will soon be able to use the “Tap and Pay” function.

ATM UPI:

The RBI plans to roll out UPI ATMs throughout the country. These ATMs allow you to take out cash straight from your bank account by scanning a QR code.

November 2023 saw UPI transactions reach a new high of Rs 17.4 trillion, up 1.4 percent from Rs 17.16 trillion in October 2023. Concurrently, there was a 1.5% decrease in transactions, from a record high of 11.41 billion a month earlier to 11.24 billion.

Related Articles

Back to top button