2024 New Year- Are you aware about 5 major UPI changes- Know all about RBI’s latest modifications

2024 New Year: Are you aware about 5 major UPI changes? Know all about RBI’s latest modifications

With the coming of the new year comes new changes in many sectors. Along with changes in the finance sector, UPI rules have also changed. The new regulations promise significant enhancements to the online banking and payment transaction experience.

The Unified Payments Interface (UPI), a swift mobile-based money transfer system, has emerged as the nation’s fastest-growing payment method. Its launch sparked a massive surge in digital transactions across India

Here are the significant changes made in the UPI rules in 2024

1. Inactive UPI IDs to be deactivated: Payment apps like Google Pay and PhonePe must verify and maintain active UPI IDs as the National Payments Corporation of India (NPCI) instructs deactivating inactive ones after a year.

2. Beta phase for ‘UPI for Secondary Market’: NPCI’s ‘UPI for Secondary Market’ enters Beta phase, enabling limited pilot customers to block funds post-trade confirmation, settling payments on a T 1 basis via Clearing Corporations.

3. Increased transaction limit: RBI raises UPI transaction limit for hospitals and educational institutions from ₹1 lakh to ₹5 lakh, facilitating higher online payments post monetary policy committee meeting.

4. Cash withdrawal via QR code: Hitachi Payment Services launches India’s first UPI-ATM in collaboration with NPCI, aiming for nationwide introduction, enabling cash withdrawal via QR code scanning.

5. 4-hour window for first payments: RBI proposes a 4-hour window for users initiating first payments over ₹2,000 to new recipients, allowing transaction reversal or modification, enhancing control and security.

By August 2023, UPI achieved an impressive feat, surpassing 10 billion transactions. A senior official at the National Payments Corporation of India expressed optimism, stating that the country holds the capacity to process 100 billion Unified Payments Interface (UPI) transactions monthly.