The Unified Payments Interface (UPI) has revolutionized the way we make payments in India. It is a fast, secure, and convenient way to transfer money between bank accounts. To further enhance the scope and security of UPI payments, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have introduced some new regulations and changes that came into effect on January 1, 2024.
5 UPI rules that are changing in 2024
1. Deactivation of Inactive UPI IDs
To ensure a clutter-free and efficient UPI ecosystem, the National Payments Corporation of India (NPCI) has directed banks and payment apps like Google Pay, Paytm, and PhonePe to deactivate all UPI IDs that have been inactive for over a year. Users should regularly check their UPI IDs and associated phone numbers to avoid deactivation.
2. Increased Transaction Limits 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 will facilitate larger online payments for healthcare and education expenses, making transactions more convenient for users.
3. Introduction of UPI ATMs
The RBI is planning to introduce UPI ATMs across the nation, allowing users to withdraw cash by scanning a QR code. This innovative feature will provide a new level of convenience for cash withdrawals.
4. Time Limit for New Transactions
For added security, the RBI proposes a 4-hour time limit for users making first-time payments over ₹2,000 to new recipients. This measure gives users the ability to reverse or modify transactions, providing an extra layer of control.
5. Interchange Fee on Merchant Payments
A new interchange fee of 1.1% will be levied on transactions above ₹2,000 made using prepaid payment instruments like wallets. This fee will help merchants cover transaction costs and encourage the wider adoption of UPI payments.
These new regulations and changes are expected to further boost the adoption of UPI and make it more secure and convenient for users.
A few things to keep in mind (2024):
- The new regulations and changes apply to all UPI transactions made on or after January 1, 2024.
- If you have any questions about the new regulations, you can contact your bank or the NPCI.
- It is important to be aware of the latest scams and frauds and to take steps to protect yourself from them.
I hope this blog has been helpful. Please let me know if you have any questions.
Tips for staying safe when using UPI:
- Never share your UPI PIN with anyone.
- Use a strong and unique PIN for your UPI account.
- Be careful about the apps you download and the websites you visit.
- Only make payments to trusted recipients.
- If you suspect any fraudulent activity, report it to your bank immediately.
By following these tips, you can help to make UPI transactions safe and secure for everyone.
