Major UPI Changes: UPI, or Unified Payment Interface, has been traveling the world since 2021 and has seen a lot of dynamic changes in recent years. In August last year, UPI recorded over 10 billion transactions, which is approx. 2 billion more than the entire global population, transforming the landscape of digital payments.
Who would have ever thought that it could position India as a leader in real-time payment transactions worldwide, attracting around 260 million users so far!
Regulated by the RBI and developed by the National Payments Corporation of India (NPCI), UPI allows users to link multiple bank accounts in one application, combining various banking features for easy fund transfers and merchant payments.
To make UPI even more user-friendly for every Indian, the government is rolling out some changes from the beginning of this year. So, keep reading to keep yourself updated, find those 5 major changes in UPI, and how they can make your everyday life easier!
5 Major UPI Changes
1. Inactive UPI IDs
Ever wondered what happens if you forget about your UPI ID for a year or more?
Well, Major UPI Changes, the National Payments Corporation of India (NPCI) has directed banks and all the online payment apps like PhonePe, Google Pay, Paytm, and similar platforms, as well as banks, to deactivate all the UPI IDs left inactive for the last 12 months.
So, if you’ve got a UPI ID that you haven’t used in a very long time, it’s high time to use it for at least one payment soon to keep it active and avoid getting deactivated.
This move is essentially to prevent unused accounts and potential misuse.
2. Increased transaction limit
The RBI has recently set a new maximum daily payment limit for UPI transactions. Major UPI Changes From now on, the limit for hospitals and educational institutions is Rs. 5 lakh, a significant jump from the previous Rs. 1 lakh.
This will make it convenient for customers and simplify huge payments to such institutions to complete their transactions.
But wait, there’s more: for regular payments like credit card repayment, mutual fund subscriptions, and insurance premium payments, Major UPI Changes the transaction limit has been increased from Rs. 15,000 to Rs. 1 lakh.
3. Pilot Project for ‘UPI for Secondary Market’
Recently, NPCI has revealed plans for the upcoming launch of ‘UPI for Secondary Market’ in its Beta Phase, approved by the SEBI and set to commence in the first week of January.
In simpler terms, investors can block funds in their bank accounts during this pilot project. These funds will only be debited by the Clearing Corporations upon trade confirmation during settlement. Major UPI Changes Here, Clearing Corporations will process payouts directly to the clients on a T+1 basis.
So now, you don’t have to transfer the funds to your stockbroker account; instead, you can directly block funds in your bank account for placing trades.
However, it is important to note that this is currently limited to the equity cash segment and available to a limited set of pilot customers.
4. Cash Withdrawal by using a QR Code
NPCI and Hitachi Payment Services have teamed up to introduce India’s first UPI-ATM. This means you can now withdraw cash by just scanning a QR code. The RBI is planning a nationwide rollout of UPI ATMs.
5. Fraud Prevention by a 4-hour window for first payments
To reduce the rising cases of online payment fraud, a new plan is in place. Every time a user initiates the first payment of over Rs. 2,000 to someone they have yet to transact with before, they will have a 4-hour time limit. This means the user will have four hours to modify or reverse payments to a first-time user.
Understanding UPI Payments – A Seamless Digital Transaction Experience
Introduction: Unified Payments Interface (UPI) has revolutionized the way we conduct digital transactions, providing a seamless and secure platform for transferring money. This innovative payment system, developed by the National Payments Corporation of India (NPCI), has gained widespread popularity due to its simplicity and efficiency.
How UPI Works: Unlike traditional payment methods, UPI allows users to link multiple bank accounts to a single mobile application, creating a unified platform for various financial transactions. Major UPI Changes is that Users can send and receive money, pay bills, and make purchases directly from their bank accounts using UPI.
The process begins with the registration of a user’s mobile number with their bank account. Once registered, a unique UPI ID is created, often referred to as a Virtual Payment Address (VPA). This VPA acts as a unique identifier for the user, eliminating the need to share sensitive bank details during transactions.
Advantages of UPI Payments:
- Instant Transactions: UPI enables real-time fund transfers, allowing users to send and receive money instantly.
- 24/7 Availability: UPI operates round the clock, providing users with the flexibility to make transactions at any time.
- Ease of Use: The user-friendly interface of UPI apps makes it easy for people of all ages and technological backgrounds to navigate and conduct transactions.
- Security Features: UPI transactions are secured with multiple layers of authentication, including MPIN and biometrics, ensuring the safety of users’ financial data.
Popular UPI Apps: Several banks and third-party providers offer UPI-enabled apps, each with its unique features. Some of the popular UPI apps include Google Pay, PhonePe, Paytm, and BHIM.
Conclusion: In a digital era where convenience and security are paramount, UPI has emerged as a game-changer in the realm of financial transactions. Its user-friendly approach, coupled with advanced security measures, makes it a preferred choice for millions, propelling India towards a cashless and efficient economy.
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