The Reserve Bank of India (RBI) has made UPI new rules 2024 starting January 1, 2024, to make UPI transactions safer and more widespread. This article will explain these changes and how they make online banking and payments better for you.
1. Deactivation of Inactive UPI IDs
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To ensure the security and integrity of UPI transactions, the National Payments Corporation of India (NPCI) has instructed payment apps and banks to deactivate UPI IDs and associated phone numbers that have been inactive for more than a year. This rule aims to prevent unintentional or mistaken money transfers to the incorrect recipients, ensuring that your money reaches the right place as intended by you. Users of popular platforms like Paytm, Google Pay, and PhonePe are advised to verify and maintain the activity of their UPI IDs. It is essential to review and initiate at least one transaction if your UPI ID has been dormant for an extended period.
2. UPI for the Secondary Market
To expand the utility of UPI, the NPCI has announced the upcoming launch of ‘UPI for Secondary Market‘ in its Beta phase. This teamwork includes important participants and will enable a chosen few customers to stop money transfers once they confirm a trade in the secondary market. Clearing Corporations will process payouts on a T1 basis, ensuring a more efficient settlement process.
3. Higher Transaction Limits for Specific Institutions
Recognizing the need for increased online payments in critical sectors like healthcare and education, the RBI has raised the transaction limit for UPI payments to hospitals and educational institutions from ₹1 lakh to ₹5 lakh. After a meeting by a group overseeing money policies, this adjustment intends to make it easier and safer for people to make big payments in these specific areas.
4. Introduction of UPI ATMs
To provide greater convenience to users, the RBI has planned the nationwide introduction of UPI ATMs. These ATMs will allow users to withdraw cash directly from their bank accounts by scanning a QR code. Hitachi Payment Services, in collaboration with NPCI, has already launched the country’s first UPI ATM as a White Label ATM (WLA). This new idea removes the necessity of having a physical debit card, making it easier and safer to withdraw cash.
5. Four-Hour Window for First Payments
In a proactive move to combat the rising number of online payment fraud cases, the RBI has proposed a four-hour time limit for users making their first payments of ₹2,000 or more to new recipients. This option allows users to check and change transactions made with people they haven’t dealt with before, giving them more control and making payments more secure. Introducing this helps protect users’ money and makes online transactions more trustworthy.
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Frequently Asked Questions
Q: What is the new UPI limit per month? A: The new UPI transaction limit per month is ₹5 lakh for payments made to hospitals and educational institutions. This change allows individuals to make larger online payments in critical sectors.
Q: What is the limit of GPAY per day? A: The daily transaction limit for Google Pay (GPAY) is subject to the overall UPI transaction limit set by the RBI, which is currently ₹5 lakh for specific institutions and ₹1 lakh for general transactions.
Q: What is the UPI max limit by RBI? A: The maximum transaction limit for UPI payments, as set by the RBI, is ₹5 lakh for payments made to hospitals and educational institutions. The general transaction limit is ₹1 lakh.
Q: What is the daily UPI limit of Bank of India? A: The daily transaction limit for UPI payments in Bank of India is subject to the overall UPI transaction limit set by the RBI, which is currently ₹5 lakh for specific institutions and ₹1 lakh for general transactions.
With these new rules and regulations, UPI transactions in India are set to become even more secure and convenient. The enhanced transaction limits, the introduction of UPI ATMs, and the four-hour window for first payments all contribute to a better online payment experience. Stay informed and make the most of these new features as you continue to embrace the digital revolution in financial transactions.