Technology

IIE Digital Desk:The Reserve Bank of India (RBI) has revealed measures and adjustments aimed at expanding the reach of UPI payments that came into effect on January 1st, 2024. These new regulations hold the potential for substantial improvements to the online banking and payment transaction experience. Here’s more about the recent changes.

New UPI rules and regulations

Payment apps like Google Pay and PhonePe are required to verify and maintain active UPI IDs, as the National Payments Corporation of India (NPCI) directs the deactivation of inactive UPI IDs after a year.

The RBI has recently increased the UPI transaction limit for hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh, enabling higher online payments following the monetary policy committee meeting.

RBI proposes a 4-hour window for users initiating first payments over Rs 2,000 to new recipients, providing the option for transaction reversal or modification to enhance control and security.

For specific merchant UPI transactions surpassing Rs 2,000 and involving prepaid payment instruments (PPI), such as online wallets, there will be a 1.1 percent interchange fee.

Starting now, when users make a payment using UPI apps to someone, the actual name of the person’s bank account will be shown on the screen. 

NPCI’s ‘UPI for Secondary Market‘ enters the Beta phase, allowing limited pilot customers to block funds post-trade confirmation and settle payments on a T 1 basis via Clearing Corporations, as per reports.

Hitachi Payment Services, in collaboration with NPCI, launched India’s first UPI-ATM, with plans for nationwide introduction, allowing cash withdrawal through QR code scanning.