In its pursuit of providing cutting edge services, NPCI has introduced five new UPI rules that will make the system more secure, seamless and convenient for users.
It is not just the consumers who will be celebrating this new year, our very own UPI is also celebrating a new year by introducing 5 new UPI rules users will have to watch out for.
Bringing substantial improvements to India’s digital payment landscape, NPCI and RBI have rolled out several new initiatives across the UPI infrastructure.
Here are the new rules that users will have to follow starting January 2024.
1. Inactive UPI IDs: NPCI in its recent communication has instructed banks and payment apps to identify and deactivate the UPI IDs that have been laying dormant for more than a year. This means, if you have not used any of your existing UPI ID for over an year, its time to use that ID or risk the deactivation.
2. UPI for secondary market: Moving further from general consumers, NPCI is also launching UPI for secondary market and the project has entered its beta phase. The select few pilot customers in the beta phase will be able to block funds that will be debited upon trade confirmation for settlement with clearing corporations processing the payment on a T1 basis.
3. Enhanced transaction limit: Reserve Bank of India, in its recent monetary policy committee meeting in December 2023, increased the UPI transaction limit from INR 1 Lakh to INR 5 Lakh to facilitate large payment to hospitals and educational institutions.
4. Cash withdrawal via QR code: In a first, Hitachi Payment Service and NPCI have collaborated to launch India’s first UPI ATM. This form of ATM will allow users to withdraw cash by scanning a QR code. On a broader scale, The Reserve Bank of India is planning to introduce UPI ATMs throughout the country.
5. Enhanced safeguards: To protect the rights of the consumers, RBI has proposed a 4-hour window for users initiating a new payment bigger than INR 2000. This will enhance the security of the consumers while also safeguarding their hard earned income.
These measures from the NPCI will ensure that the already-amazing UPI interface is even more secure, seamless and easy for users to use.