As Unified Payments Interface (UPI) is revolutionizing the digital payment ecosystem in India, the ushering in of 2024 come with a number of changes. These changes aim at enhancing convenience and financial inclusivity and security. We will delve into the five pivotal rules you need to know, for smooth transactions on the UPI platform.
1. Stepping Up Transaction Limits: A Boon For Really Important Sectors
The Reserve Bank of India (RBI) has now stepped the UPI transaction limit higher, for payments involving hospitals and education institutions. The change is from ₹1 lakh to ₹5 lakh, and this growth is chiefly aimed at:
- Encouraging to raise UPI usage in these sectors.
- Facilitating real-time transactions and on-the-spot settlements.
Consumers can now settle high-value transactions instantly, and establishments can expand their reach through this customer-friendly payment method. Which is good!
2. UPI Loans: Helping with Financial Inclusion Too
Pre-sanctioned credit lines on UPI. This new change will make loans easily accessible to individuals and businesses, thereby aiding financial inclusion in India.
3. UPI for Secondary Market: Making Trade Settlements More Efficient
The NPCI (National Payments Corporation of India) has announced ‘UPI for Secondary Market.’ This new venture aims to:
- Streamline trading settlements.
- Enable funds to be blocked post trade verification.
- Allow pilot customers to settle payments via Clearing Corporations on a T+1 basis,
This new thing will make trade settlements more efficient and secure, posing a whole new avenue for the payment and settlement of trades.
4. QR Code-Based UPI ATMs: The Future of Money Withdrawal
The QR code-based UPI ATMs are still under lots of testing, but they will change the way cash withdrawals are done. This new system will eliminate the need for physical debit cards. Making money more accessible for every user!
5. Cooling Period for Transactions
RBI has proposed a guideline of a four-hour cooling time for initiating new payments exceeding ₹2,000 to new payees. This is a preventive measure that correlates with the growth of digital trees in urban jungle. It provides users plenty of time to:
- Look at every detail of the transaction.
- Make changes or reverse the transaction if it’s necessary.
Other Features That You Should Know
Last year saw that UPI was integrated with credit systems and this made managing credit much more easier. The NPCI also recommended deactivating UPI IDs unused, for a year from January 1, 2024. This necessitates that consumers check and keep track of their UPI IDs’ activity status.
Also, Introducing UPI services to feature phones is a groundbreaking step towards financial inclusion, that will resonate with users in rural areas.
Conclusion: Welcoming the New Updates
The latest updates in UPI norms are certain to completely alter the digital payments landscape. They will pave the way for easier transactions, financial inclusivity, and better safety features. By adopting these changes, users can enjoy UPI transactions, benefiting from better features, and safeguards!”
