Attention UPI Users! 5 major changes you must know in 2024

UPI New Rules, UPI Transaction Limit: Unified Payments Interface or UPI is one of the most popular payment modes these days. The instant real-time payment system, which has been developed by the National Payments Corporation of India (NPCI), allows users to use multiple bank accounts in a single mobile application. Officially launched in 2016 for public use, UPI has undergone several changes over the years. 

To make the platform more secure, the Reserve Bank of India (RBI) has introduced some measures that came into effect on January 1, 2024.

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. UPI For Secondary Market: NPCI has announced ‘UPI for Secondary Market’ and it has entered its Beta phase. The app enables limited pilot customers to block funds post-trade confirmation, settling payments on a T1 basis via Clearing Corporations. 

3. Transaction limit: The Central bank has substantially raised the transaction limit for UPI payments. In December, RBI Governor Shaktikanta Das announced another limit increase. The limit has now been increased from Rs 1 lakh to Rs 5 lakh. This limit will be applicable for payments to hospitals and educational institutions. The decision has been taken to encourage people to adopt UPI for such transactions.

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.