5 Major UPI Changes You Can’t Ignore in 2024

Major UPI changes: The Unified Payment Interface (UPI) will travel around the world starting in 2021 and has experienced many dynamic changes in recent years. In August last year, UPI recorded more than 10 billion transactions. With 2 billion more people than the world’s population, they are transforming the digital payments landscape.

Who would have imagined that India would be able to establish itself as a leader in real-time payment transactions globally, attracting around 260 million users so far?

Regulated by RBI and developed by National Payments Corporation of India (NPCI), UPI allows users to link multiple bank accounts in one application, combining various banking features for easy fund transfers and merchant payments .

To make UPI more user-friendly for all Indians, the government is expected to announce several changes starting early this year. So, keep reading to stay informed and learn about the five major changes to UPI and how they can make your everyday life easier!

5 Major UPI Changes

1. Inactive UPI ID

Have you ever wondered what happens if you forget your UPI ID for more than a year?

The National Payments Corporation of India (NPCI) has directed banks and all online payment apps such as PhonePe, Google Pay, Paytm and similar platforms to deactivate all UPI IDs that have been deactivated in the last 12 months. .

So, if you have a UPI ID that hasn’t been used for a long time, it’s time to use it for at least one payment soon to keep it active and prevent it from becoming deactivated.

These measures are essentially aimed at preventing unused accounts and potential misuse.

2. Increased transaction limit

RBI recently set a new maximum daily payment limit for UPI transactions. From now on, the limit for hospitals and educational institutions is 50 million won. It was 50 million won, a significant increase from the previous 50 million won. 100,000.

This makes it convenient for the customers and simplifies the hefty payment to the institution to complete the transaction.

But please wait a moment. For regular payments such as credit card repayments, mutual fund subscriptions and insurance premium payments, the transaction limit has been increased from Rs. 15,000 ~ Rs. 100,000.

3. ‘UPI for distribution market’ pilot project

Recently, NPCI announced plans to launch ‘UPI for Secondary Market’ in beta stage, which is scheduled to begin in the first week of January after approval from SEBI.

Simply put, investors can block funds in their bank accounts during this pilot project. These funds will only be withdrawn by the clearing company upon confirmation of the transaction during settlement. Here, the clearing company processes payments directly to the customer on a T+1 basis.

So now there is no need to transfer funds to your stockbroker account. Instead, you can directly block funds in your bank account for transactions.

However, it is important to note that this is currently limited to the equity cash segment and is only available to a limited number of pilot customers.

4. Cash withdrawal using QR code

NPCI and Hitachi Payment Services have joined forces to launch India’s first UPI-ATM. Now you can withdraw cash by just scanning the QR code. RBI plans to roll out UPI ATMs across the country.

5. Fraud prevention within 4 hours from first payment

A new plan has been put in place to help reduce the growing number of cases of online payment fraud. Whenever a user initiates the first payment of more than Rs. If you give 2,000 to someone you haven’t traded with before, there will be a 4 hour time limit. This means users have 4 hours to modify or cancel payments for first-time users.

Written by Shivani Singh

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