There will be these big changes in the rules of UPI payment, know what will be the impact on you

UPI Payment Rules Changing

UPI Payment Rules Changing in January 2024: There is hardly anyone who does not use Unified Payments Interface (UPI). Since its launch, it has acquired the title of most preferred payment method in India. For your information, let us tell you that it was developed by National Payments Corporation of India (NPCI) in the year 2016 and after its launch, it has completely changed the way Indians make payments and receive money. For your information, let us tell you that in the last few months, NPCI has announced many changes in UPI payments. All these changes will be implemented from the month of January itself. So let us know about these changes in detail.

UPI Transaction Limit Increased

Increase in UPI transaction limit

In the month of December last year, RBI Governor Shaktikanta Das announced that the transaction limit for UPI payments has been increased to Rs 5 lakh from the earlier Rs 1 lakh. The governor said in the bi-monthly Monetary Policy Committee (MPC) announcement that this increase has been made to make payments to hospitals and educational institutions, and to improve the adoption of UPI for online payments.

Inactive UPI ID To Get Deactivated

Inactive UPI IDs will be deactivated

Last year, NPCI had directed payment apps like Google Pay, Paytm and PhonePe as well as banks to deactivate inactive UPI IDs that have not been active for more than a year by December 31, 2023. In such a situation, it can be assumed that all such accounts have been deactivated by now.

No Authentication Needed

No authentication for UPI auto payments up to Rs 1 lakh

RBI has recently announced that in some cases, Additional Factor Authentication (AFA) will no longer be required for UPI payments up to Rs 1 lakh. The RBI Governor said that the limit for e-mandate used for recurring payments of credit card repayment, mutual fund subscription and insurance premium without AFA has been increased. Before the announcement, the limit on the amount that could be transferred without AFA was Rs 15,000.

UPI Lite Wallet

UPI Lite Wallet transaction limit increased

The transaction limit for offline UPI Lite wallet has also been increased from Rs 200 to Rs 500. The maximum amount that can be transferred is Rs 2,000. This increase has been made to promote the use of UPI-Lite wallet in areas with poor internet connection.

UPI Payment Interchange Fee

Interchange fee on some UPI payments

NPCI had announced to impose 1.1 percent interchange fee on UPI payments made by some merchants. This fee applies to transactions above Rs 2,000 made using prepaid payment devices such as online wallets.

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