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New UPI Payment Regulations Explained
With effect from January 1st, 2024, the Reserve Bank of India (RBI) has disclosed programs and changes designed to broaden the scope of UPI payments. The customer experience with online banking and payment transactions might be significantly enhanced by these new laws. Further information regarding the most current adjustments may be found here.
What are the new rules applied for UPI payment?
Payment apps like Google Pay and PhonePe must verify and store active UPI IDs as the National Payments Corporation of India (NPCI) requires inactive UPI IDs to be retired after a year. The RBI recently raised the UPI transaction limit for hospitals and educational institutions from 1,000 to 5,000, allowing higher net payments after the Monetary Policy meeting.
RBI offers a 4-hour grace period for users making first payments above Rs 2,000 to new payees to cancel or change transactions for better control and security. Certain merchant UPI transactions above Rs 2,000 involving prepaid payment instruments (PPIs) such as e-wallets will be subject to a transaction fee of 1.1 percent.
>From now on, when users make a payment to someone using UPI apps, the person's actual bank account name will appear on the screen. NPCI's 'UPI secondary market' is entering a beta phase where limited pilot customers will reportedly be able to block funds after transaction verification and make T 1 payments through the Clearing Corporation, according to reports.
Hitachi Payment first UPI ATM
Hitachi Payment Services in collaboration with NPCI has launched India's first UPI ATM nationwide with a plan to enable cash withdrawal by scanning a QR code. UPI is a real-time payment system created by NPCI, the regulator of RBI. Using the existing IMPS infrastructure, UPI enables instant money transfers between any party's bank accounts.
It is worth noting that in November 2023, the transaction value of UPI reached a new high of 17.4 trillion rupees, showing a growth of 1.4% compared to the 17.16 trillion rupees of October 2023. However, the number of transactions decreased slightly, falling 1.5 percent to 11.24 billion from last month's record high of 11.41 billion.