From UPI ATMs to daily payment limits; new regulations, changes go into effect on Jan 1
PTC News Desk: The Reserve Bank of India (RBI) has announced some measures and changes that will take effect on January 1, 2024, to broaden the scope of UPI payments.
Notably, the National Payments Corporation of India (NPCI) has directed payment apps such as Google Pay, Paytm, PhonePe, and others, as well as banks, to deactivate UPI IDs and numbers that have been inactive for more than a year.
According to NPCI, the daily payment limit for UPI transactions is now 1 lakh. To encourage more people to use UPI payments, the RBI increased the transaction limit for UPI payments to hospitals and educational institutions to 5 lakh on December 8, 2023.
There will also be a 1.1% interchange fee on certain merchant UPI transactions exceeding 2,000 that are made with prepaid payment instruments (PPI) such as online wallets.
To combat the growing number of cases of online payment fraud, a four-hour time limit would be imposed each time a user initiates the first payment exceeding 2,000 to another user with whom they have not previously transacted.
UPI members will soon be able to use the 'Tap and Pay' functionality.
RBI, in collaboration with the Japanese company Hitachi, will now roll out UPI ATMs across India, allowing you to withdraw cash from your bank account by scanning a QR code.
Notably, the Unified Payments Interface (UPI) is an Indian real-time payment system that enables seamless, instant transactions between banks via smartphones.
The Unified Payments Interface (UPI), which is used for instant money transfers via mobile devices, has become the country's fastest-growing payment mode. The volume of digital transactions in India has increased exponentially since its inception.
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