In the ever-evolving landscape of digital transactions, the Unified Payments Interface (UPI) has become a cornerstone of financial interactions in India. To ensure the seamless functioning and security of this digital payment system, recent updates and regulations have been introduced. Here’s a comprehensive overview of the latest changes in UPI transaction rules for 2024.
Understanding the New Rules for UPI Transactions:
1. Deactivation of Inactive UPIs: The National Payments Corporation of India (NPCI) has directed payment apps such as Paytm, Google Pay, PhonePe, and banks to deactivate UPI IDs and numbers that have remained inactive for over a year. This move aims to tackle dormant accounts and mitigate the risk of potential misuse. UPI IDs and linked mobile numbers unused for transactions over 12 months will be subject to deactivation.
2. Increased Transaction Limits: The NPCI has set a new maximum daily payment limit of Rs 1 lakh for UPI transactions. However, the Reserve Bank of India (RBI) has recently increased the transaction limit for education and healthcare facilities to Rs 5 lakh. This adjustment, effective from December 8, 2024, is designed to accommodate larger transactions in critical sectors.
3. Interchange Fee for Specific Merchant UPI Transactions: In a change announced in early 2023, specific merchant UPI transactions exceeding Rs 2,000 and conducted through prepaid payment instruments (PPI) will incur an interchange fee of 1.1 percent. Notably, customers will not face additional costs during these transactions.
4. Four-time Limit for New Users: To combat the rising cases of online payment fraud, there are indications of a four-hour time limit for the first payment exceeding Rs 2,000 between users who haven’t transacted before. Additionally, an upcoming ‘Tap and Pay’ feature is anticipated for UPI users, pending an official announcement.
5. UPI ATMs Nationwide: The RBI is set to introduce UPI ATMs across the country. Users will be able to scan a QR code to withdraw cash directly from their bank accounts. In November 2023, UPI transactions reached a fresh peak, amounting to Rs 17.4 trillion, showcasing the system’s robust growth despite a slight decrease in the number of transactions.
As the digital payments landscape continues to evolve, UPI users are urged to stay informed and adapt to these changes for a secure and efficient transaction experience.
