RBI announced new rules and regulations 2024 regarding UPI; What is UPI and it’s benefits?

In a recent development, the Reserve Bank of India (RBI) has unveiled new rules and regulations of 2024 regarding UPI and aimed at expanding the capabilities of Unified Payments Interface (UPI) payments.

Important new rules and regulations 2024 regarding UPI are follows.

Enhancing UPI Transaction Limits:

The Reserve Bank of India (RBI) has introduced new rules to increase the transaction limits for UPI payments. Here are the key changes:

Higher Limits for Specific Transactions:

  • The transaction limit for UPI payments made to hospitals and educational institutions has been raised from Rs 1 lakh to Rs 5 lakh.
    • For most UPI transactions, the limit is Rs. 1 lakh. However, certain categories like Capital Markets (Broking, Mutual Funds, etc.), Collections (Credit card payments, Loan re-payments, EMI), and Insurance have a higher limit set at Rs. 2 lakhs.

Expanded e-Mandates for Recurring Transactions:

  • The limits for executing e-mandates without Additional Factor of Authentication (AFA) have been increased.
    • Specifically, for credit card bill payments, mutual fund subscriptions, and insurance premiums, the limit for e-mandates has been raised from Rs 15,000 to Rs 1 lakh.

These changes aim to facilitate larger transactions, especially in essential sectors like healthcare and education. The overall goal is to provide users with more flexibility in their transactions while ensuring added convenience and security for recurring online payments. These updates reflect the RBI’s commitment to adapting and optimizing digital payment systems to meet the changing needs of users in a secure and efficient manner. These new rules and regulations 2024 regarding UPI is need of time.

Also Read – 7 Benefits of RuPay credit card with UPI; What is RuPay credit card?

What is UPI?

After knowing new rules and regulations 2024 regarding UPI , It’s very important to have a brief look on concept of UPI.

  • Unified Platform: UPI consolidates multiple bank accounts into a single mobile application, accessible from any participating bank.
  • Banking Features: It merges various banking functionalities, such as fund transfers, within the mobile app.
  • Development: NPCI introduced UPI in 2016, building it on the Immediate Payment Service (IMPS) infrastructure.
  • Global Success: UPI stands out as one of the most successful real-time payment systems globally.
  • Transaction Safety: UPI ensures simplicity, safety, and security in both person-to-person (P2P) and person-to-merchant (P2M) transactions within the Indian context.
new rules and regulations 2024 regarding UPI

New Features of UPI:

New rules and regulations 2024 regarding UPI was need of time at the same time we should also have a look on New Features of UPI.

  1. Credit Line on UPI: This feature allows users to access pre-approved credit lines from banks through UPI. Previously, only the deposited amount could be used for transactions via the UPI system.
  2. UPI Lite X: Users can now send and receive money offline using any compatible device with Near Field Communication (NFC) support.
  3. UPI Tap & Pay: This feature enables payments at merchants with NFC-enabled QR codes, allowing users to complete transactions with a single tap without entering a PIN.
  4. Conversational Payments:
    • Hello! UPI: Users can use voice commands to transfer funds and complete transactions by inputting a UPI PIN.
    • BillPay Connect: Customers can pay bills by sending a simple ‘Hi’ message or giving a missed call.
  5. Other Proposed Changes for UPI Payments:
    • NPCI has requested banks and mobile payment apps to deactivate UPI IDs and numbers of accounts inactive for one year.
    • For added security, there is now a four-hour time limit for users initiating first payments over Rs 2,000 to new recipients, allowing them to reverse or modify transactions within that window.
    • Introduction of UPI ATMs, allowing cash withdrawal by scanning a QR code.

About National Payments Corporation of India (NPCI):

> NPCI is the umbrella organization overseeing retail payments and settlement systems in India.
> It was initiated by the RBI and the Indian Banks’ Association (IBA) under the Payment and Settlement Systems Act, 2007.
> NPCI is registered as a “Not for Profit” Company under Section 8 of the Companies Act 2013.
> It has introduced various payment products such as RuPay card, IMPS, UPI, BHIM, BHIM Aadhaar, Bharat BillPay, etc.

Initiatives to Promote UPI:

After having look on new rules and regulations 2024 regarding UPI; Some important steps have been taken to promote UPI.

  1. UPI for Secondary Market: NPCI introduced UPI for the secondary market to simplify equity trading in the country.
  1. UPI Chalega Campaign: NPCI launched the UPI Chalega Campaign to encourage the use of UPI as a convenient, secure, and instant payment method. The campaign also educates users about features like UPI LITE, facilitating quick low-value transactions.
  1. MoU between Google India Digital Services and NPCI International Payments: An agreement between Google India Digital Services and NPCI aims to expand the use of UPI payments. This collaboration enables travelers to make transactions abroad and streamlines the remittance process between countries.
  1. India’s UPI in Overseas Markets: Several countries, including Oman, UAE, France, Nepal, Bhutan, etc., have adopted the UPI system for payments.
  1. UPI 123PAY: UPI 123PAY is an instant payment system designed for feature phone users. It allows them to use UPI payment services in a safe and secure manner.

Benefits of UPI:

RBI’s new rules and regulations 2024 regarding UPI will surely help to enhanced the benefits of UPI.

  • Convenience:
  • UPI offers a seamless and user-friendly platform for making digital payments, eliminating the need for physical cash transactions.
  • Instant Transfers:
  • Transactions through UPI are processed in real-time, ensuring immediate fund transfers between parties.
  • 24/7 Availability:
  • UPI services are available 24/7, providing users with the flexibility to make transactions at any time, including weekends and holidays.
  • Interoperability:
  • UPI is interoperable across various banks and financial institutions, allowing users to make transactions between different banks effortlessly.
  • Multiple Bank Accounts:
  • Users can link multiple bank accounts to a single UPI ID, providing flexibility in choosing the account for each transaction.
  • Security:
  • UPI transactions are secured with multi-factor authentication, including PINs and biometric verification, ensuring a high level of security for users.
  • Cost-Effective:
  • UPI transactions typically have lower transaction costs compared to traditional payment methods, making it a cost-effective solution for both users and businesses.
  • Promotes Financial Inclusion:
  • UPI enables easy access to digital payment services, contributing to financial inclusion by allowing individuals who may not have traditional banking access to participate in the digital economy.
  • QR Code Payments:
  • UPI facilitates payments through QR codes, making it convenient for both merchants and customers to complete transactions efficiently.

Conclusion:

The new rules and regulations 2024 regarding UPI by the Reserve Bank of India (RBI) show that they want to make Unified Payments Interface (UPI) better. They increased the limits for certain transactions and made it easier for people to set up recurring payments. These changes aim to make UPI more useful, especially for important things like healthcare and education. UPI’s success comes from always improving, making it safe, and helping more people use digital money.

What’s different in the new rules and regulations 2024 regarding UPI?

The transaction limit for UPI payments made to hospitals and educational institutions has been raised from Rs 1 lakh to Rs 5 lakh.

How does UPI help more people use digital money?

UPI makes it easy for anyone, even if they don’t have a regular bank, to use digital money. This helps more people be part of the digital economy.

Can I use UPI to send money to other countries?

UPI is mostly for transactions within the country. But, collaborations, like the one between Google India and NPCI, aim to make it possible to send money internationally.

Why did they start the UPI Chalega Campaign?

The UPI Chalega Campaign wants more people to use UPI for payments. It also teaches users about features like UPI LITE, which makes small transactions faster.

How does UPI keep transactions safe?

UPI makes sure your transactions are safe by asking for more than one way to confirm, like a PIN or using your fingerprint. This keeps your money safe when you send it to others or buy things.

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