The Unified Payments Interface (UPI), which is utilized for instant money transfers via mobile devices, has become the country’s fastest-growing payment mechanism. The amount of digital transactions in India has expanded tremendously since its inception.
The Reserve Bank of India (RBI) announced several steps and modifications that would take effect on January 1, 2024, to broaden the scope of UPI payments.
Notably, banks and payment applications like Google Pay, Paytm, PhonePe, etc. have been requested by the National Payments Corporation of India (NPCI) to deactivate UPI IDs and numbers that have not been used for more than a year.
According to NPCI, the daily payment limit for UPI transactions is now 1 lakh. To encourage more people to adopt UPI payments, the RBI increased the transaction limit for UPI payments to hospitals and educational institutions to 5 lakh on December 8, 2023.
There will also be a 1.1% interchange charge on some merchant UPI transactions over 2,000 that are done with prepaid payment instruments (PPI) such as online wallets.
To combat the growing number of cases of online payment fraud, a four-hour time restriction would be imposed each time a user begins the first payment over 2,000 to another user with whom they have not previously transacted. Members of UPI will soon be able to use the “Tap and Pay” feature.
Furthermore, the RBI, in conjunction with the Japanese corporation Hitachi, will soon roll out UPI ATMs across India, allowing you to withdraw cash from your bank account by scanning a QR code.
Notably, the Unified Payments Interface (UPI) is an Indian real-time payment system that enables smooth, immediate transactions between banks via smartphones.
In August 2023, UPI passed a significant milestone by completing 10 billion transactions. According to a top official at the National Payments Corporation of India, the country has the capacity to process 100 billion Unified Payments Interface (UPI) transactions each month.
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Source: NDTV
