New Rules for UPI in 2024: UPI Transaction Rules Unveiled!

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New Rules for UPI in 2024

The Unified Payments Interface (UPI) has become a go-to choice for payments in India, revolutionizing digital transactions across the country. As the popularity of UPI continues to soar, some recent changes have been introduced to enhance the user experience and address emerging concerns. Let’s break down these new rules to keep you in the loop.

Deactivation of Inactive UPIs

To streamline UPI usage and prevent potential misuse, the National Payments Corporation of India (NPCI) has directed payment apps like Paytm, Google Pay, PhonePe, and banks to deactivate UPI IDs and numbers that have remained inactive for over a year. If your UPI ID or linked mobile number hasn’t been used for transactions in the past 12 months, it may be deactivated. This measure aims to curb dormant accounts and promote responsible usage.

Increased Transaction Limits

The NPCI has set a new maximum daily payment limit of Rs 1 lakh for regular UPI transactions. However, in a recent move, the Reserve Bank of India (RBI) increased the transaction limit for education and healthcare facilities to Rs 5 lakh. This adjustment is significant as it allows for higher-value transactions in crucial sectors.

You can read our previous article in this regard: RBI Boosts UPI Transaction Limit for Hospitals and Educational Institutions to 5 Lakhs!

Interchange Fee for Merchant Transactions

Introduced in early 2023, a notable change involves an interchange fee of 1.1 percent for specific merchant UPI transactions exceeding Rs 2,000. This fee applies to transactions conducted through prepaid payment instruments (PPI) like online wallets. Importantly, users won’t incur any additional costs while making these transactions, providing clarity for consumers.

Four-Hour Time Limit for First Payments

In a bid to combat online payment fraud, there are talks of implementing a four-hour time limit for the first payment exceeding Rs 2,000 between users who haven’t transacted before. Additionally, UPI users may soon have access to the anticipated ‘Tap and Pay’ feature, although an official announcement is awaited. These measures aim to bolster security and protect users from potential fraudulent activities.

To know more on ‘Tap and Pay’ and its implementation, read our previous article Revolutionizing Digital Payments: UPI Tap and Pay Set to Launch by January 31, 2024!

Introduction of UPI ATMs

New Rules for UPI in 2024: Looking ahead, the RBI plans to introduce UPI ATMs nationwide. These innovative ATMs will allow users to scan a QR code to withdraw cash directly from their bank accounts, adding convenience to UPI transactions.

Record-Breaking UPI Transactions in November 2023

In November 2023, UPI transactions reached new heights, totaling Rs 17.4 trillion in value, marking a 1.4 percent increase compared to October 2023. Although the number of transactions slightly decreased by 1.5 percent to 11.24 billion, the overall trend indicates the sustained growth and popularity of UPI in the country.

In conclusion, staying informed about these recent changes in UPI rules ensures that users can navigate the digital payment landscape confidently. As UPI continues to evolve, these adjustments aim to enhance security, convenience, and the overall user experience for millions of digital payment enthusiasts in India.

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