5 Major UPI Changes in 2024: You Should Know

India’s Unified Payments Interface (UPI), a platform already facilitating a staggering 595 million transactions daily, is poised for a transformative year in 2024. The National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) have implemented a set of key changes aimed at bolstering security, streamlining processes, and enhancing the overall user experience.

With over 452 million active users as of January 2024, these alterations have the potential to impact a vast segment of India’s population. This blog delves into these pivotal changes, their implications, and how they’ll impact your daily UPI interactions.

5 UPI Changes Implementing from January 1, 2024

Let’s unpack the major changes you can expect in 2024:

1. Removal of Inactive UPI IDs

Say goodbye to forgotten accounts! Under NPCI’s directive, payment apps like Google Pay and PhonePe will deactivate UPI IDs inactive for over a year. It’s time to review and keep yours active, along with linked phone numbers, to avoid any inconvenience.

Increased vigilance: This move not only frees up resources but also bolsters security by mitigating the risk associated with dormant accounts.

2. UPI for the Secondary Market

Get ready for easier investments! NPCI’s beta launch of “UPI for Secondary Market” opens doors to smoother fund blocking, faster trade settlements, and quicker payouts for mutual funds and bonds, all within the familiar interface.

Streamlined transactions: This initiative simplifies investment processes and attracts new participants to the secondary market, boosting its vibrancy and accessibility.

3. Extended UPI Transaction Limit By RBI

The RBI has doubled the UPI transaction limit for these sectors from ₹1 lakh to ₹5 lakh. This caters to the increasing need for high-value payments in healthcare and education, facilitating seamless online transactions for crucial services.

Enhanced affordability and convenience: Educational institutions and hospitals can now accept larger online payments, making essential services more accessible and financially manageable for users.

4. ATMs for UPI

Imagine withdrawing cash without a debit or credit card! The nationwide rollout of UPI ATMs is here. Simply scan a QR code and access your funds conveniently.

Enhanced accessibility: It brings increased reach and convenience to rural areas and locations with limited access to traditional banking infrastructure.

5. 4-Hour Window for New High-Value Transactions

Feeling unsure about a new recipient? RBI proposes a 4-hour time limit for reversing or modifying your first UPI payment (above ₹2,000) to a new recipient. This provides an extra layer of security and peace of mind, particularly for large transactions.

Combating fraud and protecting users: This feature empowers users to double-check unfamiliar transactions, minimizing the risk of fraudulent activity and safeguarding their hard-earned money.

Future of UPI: 2024 Changes!

These changes in 2024 mark a significant step towards a more secure, efficient, and inclusive digital payments ecosystem in India. These alterations cater to the evolving needs of users, address security concerns, and expand the reach of digital transactions. As India embarks on this digital journey, staying informed and adapting to these changes will be crucial for a seamless and secure experience.

FAQs

1. Will UPI replace Swift?

Countries adopting UPI are not merely embracing a payment system; they are actively participating in a digital revolution. This transition from SWIFT to UPI signifies a move towards a more inclusive and democratized financial system, simplifying and broadening access even for the smallest transactions.

2. Will UPI be free forever?

Furthermore, loading UPI wallets will now incur a 0.15% fee for the person performing the transaction. The circular regarding this change initially led to confusion among consumers. In response, NPCI issued a clarification, assuring users that transactions would remain free for them, while merchants would bear the responsibility of paying the interchange fee.

3. What is the new UPI technology?

The new UPI technology enables users to send and receive money instantly using their phone numbers or unique identifiers known as UPI IDs. Unlike traditional payment methods like NEFT and IMPS, UPI also empowers users and merchants to request money from others by sending a simple message through their bank app.

4. Which UPI is safest?
BHIM UPI stands out as one of the most reliable payment service applications. It incorporates both UPI pin authentication and two-factor authentication, guaranteeing secure transactions. Aadhar Integration: Users have the option to connect their Aadhar number to this application for Aadhar-based payments. As of October 31, 2023.