New Regulations & Changes in UPI Transactions, Check Out

New Delhi: To increase the scope of digital transactions in the Unified Payments Interface (UPI) mode, the Reserve Bank of India (RBI) declared some measures and changes applicable from January 1, 2024.

The National Payments Corporation of India (NPCI) has asked payment apps such as Google Pay, Paytm, PhonePe, etc., and banks to deactivate the UPI IDs and numbers that have not been active for more than one year.

Now the daily payment limit for UPI transactions shall be Rs 1 lakh maximum, as per NPCI. The RBI has, however, raised the transaction limit for UPI payments to hospitals and educational institutions to Rs 5 lakh on December 8, 2023.

There will also be a 1.1 per cent interchange fee on certain merchant UPI transactions above Rs 2,000, made using prepaid payment instruments (PPI) like online wallets.

To check rising cases of online payment fraud,  a four-hour time limit would be applicable each time a user initiates the first payment exceeding Rs 2,000 to another user with whom they have not previously transacted.

RBI in collaboration with the Japanese company Hitachi, will now roll out UPI ATMs all across India. At these special UPI ATMs, one will be able to scan a QR code to withdraw cash from bank accounts.