The year 2024 kicked off with some significant changes to how we use UPI payments in India. Here’s a breakdown of the 5 new rules that came into effect on January 1st, along with a peek at some proposed rule changes on the horizon: 1. Inactive UPI IDs Deactivated: Say goodbye to unused UPI IDs! Those inactive for over a year have been deactivated to promote security and prevent potential fraud. Ensure your primary UPI ID remains active by making occasional transactions.2. Increased Transaction Limit for Hospitals & Schools: Paying hefty bills for education or healthcare just got easier. The RBI raised the UPI transaction limit for hospitals and educational institutions from ₹1 lakh to ₹5 lakh, boosting cashless payments in these crucial sectors.3. No Authentication for Certain High-Value UPI Auto Payments: Streamline your recurring expenses! RBI relaxed additional factor authentication (AFA) for recurring UPI payments like credit card bills, mutual funds, and insurance premiums exceeding ₹1 lakh (previously ₹15,000).4. Interchange Fee on Merchant UPI Transactions: Be prepared for a small charge on certain merchant transactions. A 1.1% interchange fee will now be applicable on UPI transactions above ₹2,000 made using prepaid payment instruments (PPIs) like online wallets.5. 4-Hour Window for First Large Payments to New Recipients (Proposed): Enhance your control over unfamiliar transactions. RBI proposed a 4-hour window for users initiating first payments exceeding ₹2,000 to new recipients. This allows for potential correction or cancellation, adding an extra layer of security.More Changes on the Horizon: Stay informed about these exciting developments in the Indian digital payments landscape! Remember to optimize your content with relevant keywords like UPI, RBI, transactions, payments, security, and innovation to maximize organic reach.By staying proactive and adapting to these changes, you can enjoy a safer, smoother, and more rewarding experience with UPI payments in 2024 and beyond!
