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

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How to secure online transactions: tips to follow

Every now and then, we keep hearing about a new online security hack being discovered and while the world is moving towards complete digitisation, it is also true that there is a long way ahead of us, when it comes to optimum online security. That said, online transactions is one area where most cyber attacks are focused and while, we as consumers, have made online transactions popular since they make life much easier with several options it offers, it is also true that everything in life comes with a risk and with online transactions, it’s bigger than we think.

The online economy is nothing but billions of dollars being exchanged almost every single day, moreover, online transactions/shopping has resulted in lower prices, unmatched ease of buying as well as incredibly diverse choices for consumers. Being confident due to the millions of transactions taking place, many of us regularly shop and bank online with any second thought. From ordering pizzas to literally buying a house and from transferring money to booking tickets online, these online transactions are the need of the hour which is also looking to practically eliminate the worry of standing in a queue or waiting, to say the least.

However, as unfortunate as it might sound, online fraud and identity theft sort of come complimentary with the popularity and ease of online transactions, thanks to clever cyber thieves as well as sloppy consumers with precarious Internet shopping habits.

When it comes to ‘how to secure your online transactions’, while there is no guarantee that you will always be safe from a cyber threat including viruses, hackers, malware and other scams, it’s more of a habitual change that you need. On that note, here we are listing six tips that you can follow to secure your online transactions.

Tips for secure online transactions

1. Choose your password wisely: While choosing a password, strictly follow the given instructions by banks, mutual funds, etc for choosing the same while making an online transaction (keep it complex and change it regularly). Also using anniversaries or names and a date of birth, of people who are close to you is strictly discouraged since all this could easily be guessed. Moreover, neither share a password with an outsider nor communicate it via social media.

2. Avoid phishing emails: Always Be careful about emails asking about your personal/confidential financial information. The government, SEBI, RBI or even any other regulated entities never ask for password or card numbers.

3. Beware of public Wi-Fi: Never ever resort to making an online transaction from a cyber cafe or through a public Wi-Fi or a shared system. Always prefer your home computer and also install adequate firewalls and anti-virus software. It’s also a good habit to keep your computers/laptops updated with new security patches and operating systems, always.

4. Secure Socket Layer (SSL): Always check for Secure Socket Layer (SSL) or https security on the login page of any particular bank’s website. Here, the ‘s’ after the ‘http’ indicates that a particular site is secure. Similarly, look for identity verified-signs as well as SSL security of an online shopping portal in order to protect your debit/credit card number along with your personal information. Also, check for the padlock icon in the browser window.

5. Autocomplete: Always disable Autocomplete/Password storage in your browser since they have a tendency to keep caches of sites you visit, and on prompting, could offer to save passwords for you. However, if you opt for this, you will have to enter all the passwords and URLs every time to come online, but the inconvenience is worth it as your data will be safe in case of a data theft attempt or if your system gets stolen.

6. Web browser privacy mode: This is said to be the best tool in order to keep your online transactions safe, moreover, every new browser comes with this feature. This option sets up a separate browser window that deletes all the data on the moment a particular browser window is closed while clearing caches as well as keeping your private data out of public domain.

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