Unified Payments Interface (UPI) has been instrumental in driving the digital payments revolution in India. The new year brings enhanced convenience, financial inclusivity, and secured transactions for Indian consumers, powered by UPI. “In 2024, UPI will continue to grow at about 60% in terms of volume above 2023 UPI transactions; P2M will continue to trend higher than that of P2P transactions; P2M will be about 60% of the total UPI volume,” said Mehul Mistry, Global Head-Strategy, Digital Financial Services & Partnerships, Wibmo, A PayU Company.
Here are 5 such rules that UPI users must know
1. Inactive UPI IDs: NPCI has directed banks and online payment apps like Google Pay, Paytm and PhonePe to deactivate all UPI IDs that have been lying dormant for over 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: NPCI and Hitachi Payment Services have joined hands to launch India’s first UPI-ATM. This enables cash withdrawal by simply scanning the QR code. RBI is planning to nationwide introduction of UPI ATMs.
5. 4-hour window: In order to make UPI transactions safe, RBI has proposed a four-hour time limit for users initiating first payments over Rs 2,000 to new recipients. This has added an additional layer of control and security as it also allows users to reverse or modify transactions within that window.