HT Digital,
New Delhi, Jan 1: The Unified Payments Interface (UPI) has become a preferred payment mode in India, transforming the country’s payment landscape. Since its inception, UPI’s usage has soared as a convenient payment tool.
The Reserve Bank of India (RBI) has decided to introduce new rules and modifications from January 1, 2024, to enhance UPI’s safety, security, and user-friendliness. The National Payments Corporation of India (NPCI) has directed payment apps and banks to disable UPI IDs and numbers inactive for over a year.
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NPCI has set a cap of Rs 1 lakh for fund transfers between UPI accounts. Nonetheless, the RBI increased the UPI transaction limit for education and healthcare facilities to Rs 5 lakh on December 8.
An interchange fee of 1.1 per cent will apply to specific merchant UPI transactions above Rs 2,000, made via prepaid payment instruments like online wallets. To counter online fraud, RBI has imposed a four-hour waiting period between successive transactions among first-time transacting individuals.
UPI members will soon be able to utilise the ‘Tap and Pay’ functionality. Moreover, RBI will partner with Hitachi, a Japanese firm, to launch UPI ATMs, enabling cash withdrawal using a QR code.
In August 2023, UPI recorded a significant milestone of 10 billion transactions. A senior official at NPCI has stated that the country can handle 100 billion UPI transactions monthly.
