Recent Changes In UPI That Ease Your Daily Transactions - Latest Update

The world of digital transactions is evolving, with UPI (Unified Payments Interface) standing at the forefront, altering our buying habits. Even for purchasing candies or costly goods, UPI has become indispensable. In 2023, UPI facilitated 117.6 billion transactions, a huge rise compared to the 74 billion transactions in 2022 and 38.7 billion transactions in 2021. UPI underwent many latest advancements focusing on improving security, also expanding transaction limits, and integrating UPI into ATMs. Here are 5 such changes that can help you.

Transaction Cap For Enhanced Security 

If the first UPI transaction between two customers, i.e. you are sending money to a recipient for the first time above Rs 2000, then there will be a time restriction of four hours for the next transaction. It means the money will be credited to the recipient's account only four hours after you make the transaction. This feature will make the transaction more secure and will help in preventing scams. 

The normal transaction limit for UPI is capped at Rs 1 lakh, except in a few categories like capital markets (AMC, broking, mutual funds, etc.), collections (credit card payments, loan re-payments, EMI), insurance, etc., where the transaction limit is Rs 2 lakh

Rise in Transaction Limits For Hospitals & Colleges

The healthcare institutions now benefit from an increased UPI transaction limit, raised from Rs 1 lakh to Rs 5 lakh as of December 8. RBI announced this revision on December 8, 2023, in the Monetary Policy Meeting to encourage the use of UPI in critical sectors like healthcare and education. In December 2021, the transaction limit for UPI payments for Retail Direct Scheme and IPO subscriptions was increased to Rs 5 lakh. 

ATMs with UPI Integration

UPI now manages over 75 per cent of retail digital payments in India, and the introduction of UPI ATMs marks a monumental shift in transaction convenience and security. Hitachi Payments Service Limited launched Hitachi Money Spot UPI ATMs as a white-label ATM (WLA) last year. Then several public and private banks followed with similar ATMs. While normal cardless cash withdrawals rely on mobile numbers and OTPs, the UPI-ATM operates through QR-based codes. To access this service, users must only have a UPI application installed on their Android or iOS devices.

UPI In the Secondary Market

NPCI launched the UPI feature for stock trading in the secondary market on January 1, 2024. The initiative is in its beta testing phase for the equity cash segment available only to limited customers and aims to streamline trading and enhance security and profitability for investors.

The beta phase currently has the trading app Groww as the brokerage platform and also has UPI apps such as BHIM, Groww, and YES PAY NEXT participating in it.

Deactivation of Dormant UPI IDs

NPCI has announced the deactivation of UPI IDs inactive for over a year. For users who have not used a UPI ID for over one year, it will get deactivated and they will have to re-register on their UPI app if they wish to continue using the service.

NPCI said that UPI payment apps such as PhonePe, Google Pay, PayTM, etc., are required to verify and maintain active UPI IDs. So, if you have a UPI ID that hasn't been used in a long time, make at least one payment soon to avoid the deactivation of that ID