In 2024 there will be some change in the financial sector. Unified Payments Interface (UPI) Int is the fastest-growing payment system in India. To improve the payment speed and The user experience, the Reserve Bank of India and the National Payments Corporation of India (NPCI) have created some new rules that were implemented on 1 January 2024.
5 UPI Payment Rules changing in January 2024
1. Deactivate UPI ID
National Payments Corporation of India ( NPCI) has announced payment apps like Google Pay, PhonePe, and Paytm will deactivate UPI accounts that haven’t been used for the past year. This will ensure that no dormant accounts remain active, contributing to a safer payment ecosystem.
2. Transition Limit
The daily transaction limit for UPI transactions has been increased to one lakh rupees. However, in December 2023, RBI had increased the transaction limit to five lakh rupees, for payment to educational institutes and hospitals.
3. Transition Fee
A 1.1% fee charge will be applied to specific merchant UPI transactions exceeding Rs. 2000, made through Prepaid payment instruments such as online wallets.
4. Fraud Prevention
There is now a four-hour time limit between your first and second transaction for payments exceeding Rs. 2000 to a new party. This aims to reduce online payment fraud.
5. UPI ATMs
The RBI will soon set up UPI ATMs all over India. These UPI ATMs will allow you to withdraw cash directly from your bank accounts by scanning a QR code. These are the new changes implemented.