Major 2024 UPI Changes
Hey there! In 2024, using UPI for online payments is different now. The Reserve Bank of India (RBI) has introduced some new rules that will affect how we make transactions using UPI this year.These modifications are designed to impact and improve our experience with digital transactions and online banking.
As the clock struck midnight on January 1, 2024, ushering in a fresh start, the finance sector, including UPI rules, witnessed a makeover. These changes aim to make online banking and transactions smoother for all of us.
Here’s a breakdown of the top 5 changes in UPI rules for 2024:
- Inactive UPI IDs Say Goodbye: Apps like Google Pay and PhonePe now need to ensure that UPI IDs are active. The National Payments Corporation of India (NPCI) is enforcing the deactivation of inactive IDs after a year. So, keeping your UPI ID active is the new norm.
- Beta Phase for ‘UPI for Secondary Market‘: NPCI has introduced a beta phase for ‘UPI for Secondary Market.’ This allows a limited number of users to block funds after confirming a trade, with payments settled on a T 1 basis through Clearing Corporations.
- Higher Transaction Limits for Hospitals and Schools: The RBI has raised the UPI transaction limit for hospitals and educational institutions from ₹1 lakh to ₹5 lakh. This means these organizations can now make larger online payments, making things more convenient post a monetary policy committee meeting.
- Guess what? You can now take out cash using a QR code! Hitachi Payment Services, with help from NPCI, introduced India’s first UPI-ATM. This cool innovation lets you withdraw cash by just scanning a QR code, making it super easy for everyone in the country.
- A 4-hour Window for First Payments: To add a layer of control and security, the RBI proposes a 4-hour window for users making their first payments over ₹2,000 to new recipients. This window allows users to reverse or modify transactions, giving them more control over their payments.
In the backdrop of these changes, let’s not forget UPI’s remarkable journey. By August 2023, UPI achieved a significant milestone, surpassing 10 billion transactions. The National Payments Corporation of India sees even greater potential, envisioning the capacity to process a whopping 100 billion UPI transactions monthly.
As we step into 2024, the UPI landscape is undergoing significant transformation with a mix of complexity and variety, ushering in the era of 2024 UPI changes. These modifications ensure a future where online transactions are not only secure but also highly adaptable to our changing needs. Stay tuned to navigate this evolving digital terrain!
Q1: What’s changed in UPI rules for 2024?
Answer: Now, inactive UPI IDs will be deactivated after a year. Also, there’s a new feature called ‘UPI for Secondary Market’ in a test phase.
Q2: Why are UPI IDs being deactivated?
Answe: To make sure everything stays safe, NPCI is turning off UPI IDs that haven’t been used for a year.
Q3: What’s the ‘UPI for Secondary Market’ beta phase?
Answer: It’s a new trial feature where some users can block funds after confirming a trade. Payments are settled quickly for those involved in the secondary market.
Q4: Did transaction limits change for hospitals and schools?
Answer: Yes, hospitals and schools can now make larger UPI transactions, going from ₹1 lakh to ₹5 lakh, making it more convenient for them.
Q5: Why is there a 4-hour window for first payments over ₹2,000?
Answer: It’s for extra security. When we make your first payment over ₹2,000 to a new recipient, you have a 4-hour window to reverse or modify the transaction.