In a paradigm shift for India’s digital payment landscape, the Reserve Bank of India (RBI) has introduced transformative regulations set to revolutionize Unified Payments Interface (UPI) transactions. Commencing on January 1, 2024, these changes aim to enhance the security and efficiency of digital payments. Let’s delve into the five major alterations shaping the future of UPI.
1. UPI ATMs: A Game-Changer
RBI’s Vision for Convenient Cash Withdrawals
The RBI is set to introduce UPI ATMs nationwide, allowing users to seamlessly withdraw cash by scanning a QR code. This innovative feature is poised to redefine the accessibility of banking services.
2. Four-Hour Time Restriction: Combatting Fraud
Enhanced Security Measures for First-Time Transactions
To mitigate the risk of online payment fraud, a four-hour time restriction will be enforced for initial payments exceeding Rs 2,000 between first-time transacting customers. The introduction of the “Tap and Pay” function adds an extra layer of security for UPI members.
3. Interchange Fees: Balancing Transactions
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Introducing Fees for Merchant UPI Transactions
For specific merchant UPI transactions surpassing Rs 2,000 and utilizing prepaid payment instruments (PPI), an interchange fee of 1.1 percent will be levied. This move aims to balance the ecosystem and promote fair transaction practices.
4. Increased Transaction Limits: Empowering Users
NPCI’s Stride Towards Higher Transaction Ceilings
NPCI has raised the maximum daily payment limit for UPI transactions to Rs 1 lakh. Notably, healthcare and educational institutions enjoy an even higher limit of Rs 5 lakh, ushering in newfound empowerment for users.
5. Deactivation of Inactive UPI: Safeguarding Against Dormancy
NPCI’s Proactive Measure to Prevent Fraud
To enhance security, NPCI has mandated the deactivation of unused UPI IDs and numbers. Accounts inactive for over a year on platforms like Paytm, Google Pay, PhonePe, and banks will be terminated, reducing the risk of fraudulent activities.
As India strides into 2024, these UPI rule changes mark a significant leap towards a secure and user-centric digital payment landscape. Users and stakeholders alike must stay informed and adapt to these advancements shaping the future of financial transactions. Embracing these changes ensures a safer and more robust digital payment ecosystem for all.
Stay tuned for further updates on India’s evolving financial landscape. Source!
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