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5 new ways to use UPI payments as 2024 begins with these rule changes
Several changes are set to be introduced in how you use UPI payments. Take a look at them here.
As we enter the new year, it's essential to take note of the UPI rules that have been changed. These new regulations are set to bring a substantial improvement to your online banking and payment transaction experiences.
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5 UPI rules that are changing in 2024
1. National Payments Corporation of India (NPCI) have instructed payment apps to deactivate inactive UPI IDs after one year. Users of platforms like Google Pay and PhonePe must verify and ensure their UPI IDs remain active, also reviewing associated phone numbers for inactivity.
2. NPCI announced the upcoming launch of 'UPI for Secondary Market' in its Beta phase. The collaborative effort involves key stakeholders, allowing limited pilot customers to block funds, debited upon trade confirmation during settlement, with payouts processed by Clearing Corporations on a T 1 basis.
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3. Reserve Bank of India has raised UPI transaction limit for hospitals and educational institutions from ₹1 lakh to ₹5 lakh. This change, post a monetary policy committee meeting, facilitates higher online payments for education and healthcare purposes.
4. RBI plans nationwide introduction of UPI ATMs, allowing cash withdrawal by scanning a QR code. Hitachi Payment Services has already introduced 'the country's first-ever UPI-ATM’ as a White Label ATM (WLA) in association with NPCI.
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5. RBI proposes a 4-hour time limit for users making first payments over ₹2,000 to new recipients. This window allows users to reverse or modify transactions initiated with someone they haven't transacted with before, adding an additional layer of control and security.
