As the new year begins, significant shifts are reshaping the landscape of UPI payments, promising enhanced convenience and security for users. These pivotal changes, set to revolutionize online banking experiences, are poised to usher in a new era of digital transactions.
Outlined below are five transformative modifications poised to redefine the UPI payment ecosystem:
- Inactive UPI IDs Deactivation: The National Payments Corporation of India (NPCI) has mandated payment apps to deactivate dormant UPI IDs after a year of inactivity. Users of platforms such as Google Pay and PhonePe are urged to verify and maintain the activity of their UPI IDs. Associated phone numbers also require scrutiny to prevent inactivity-related issues.
- ‘UPI for Secondary Market’: NPCI’s announcement of the forthcoming ‘UPI for Secondary Market’ launch in its Beta phase is a game-changer. This initiative, involving key stakeholders, empowers limited pilot customers to block funds, ensuring debits upon trade confirmation during settlement. Clearing Corporations will oversee payouts on a T 1 basis, heralding a new era in trade settlement convenience.
- Expanded Transaction Limits: The Reserve Bank of India (RBI) has bolstered UPI transaction limits for hospitals and educational institutions from ₹1 lakh to ₹5 lakh. This crucial adjustment, following a monetary policy committee meeting, facilitates higher online payments in the realms of education and healthcare, addressing evolving financial needs.
- Introduction of UPI ATMs: RBI’s initiative to introduce UPI-enabled ATMs across the nation marks a revolutionary stride. Users will now have the convenience of cash withdrawal by simply scanning a QR code. Hitachi Payment Services has spearheaded this transformation by unveiling ‘the country’s first-ever UPI-ATM’ as a White Label ATM (WLA) in collaboration with NPCI.
- Enhanced Security Measures: RBI’s proposal to enforce a 4-hour time limit for users initiating first-time payments exceeding ₹2,000 to new recipients is a commendable step towards bolstering security. This window empowers users to reverse or modify transactions initiated with unfamiliar recipients, offering an added layer of control and risk mitigation.
As these dynamic changes unfold in the UPI ecosystem, they promise to elevate user experiences while reinforcing security protocols. Embracing these transformations positions users at the forefront of a more robust, secure, and versatile digital payment realm in 2024.
Sources By Agencies