With its ability to facilitate instantaneous money transfers via mobile devices, the Unified Payments Interface (UPI) has become the most popular payment method in the country. The amount of digital transactions in India has skyrocketed since its inception. The Reserve Bank of India (RBI) established a number of policies and procedures that would take effect from January 1, 2024, with the goal of expanding the use of UPI payments.

Notably, banks and payment applications like Google Pay, Paytm, PhonePe, etc., have been requested by the National Payments Corporation of India (NPCI) to deactivate UPI IDs and numbers that have not been used for more than a year. UPI Transactions Crosses 10 Billion Monthly Transactions Mark for the First Time: NPCI Data.

According to NPCI, the maximum daily payment limit for UPI transactions is now Rs 1 lakh. To encourage more people to use UPI payments, the RBI increased the transaction limit to Rs 5 lakh on December 8, 2023, for payments to hospitals and educational institutions. Additionally, certain merchant UPI transactions above ₹ 2,000 that are done using online wallets or other prepaid payment instruments (PPI) would be subject to an interchange fee of 1.1%.

A four-hour time restriction will be imposed each time a user begins the first payment of over Rs 2,000 to a user they have never transacted with before in an effort to stop the growing number of cases of online payment fraud. Members of UPI will soon be able to use the "Tap and Pay" feature. Furthermore, UPI ATMs, which allow you to withdraw money from your bank account by scanning a QR code, will soon be available throughout India thanks to a partnership between RBI and the Japanese corporation Hitachi. UPI Processes Record 8.03 Billion Transactions in January, Starts 2023 on a High.

Specifically, the Unified Payments Interface (UPI) is an Indian real-time payment system that facilitates quick, easy transactions between various banks using smartphones. UPI passed a significant milestone in August 2023 when it surpassed 10 billion transactions. The potential for 100 billion Unified Payments Interface (UPI) transactions per month in India has been stated by a senior official of the National Payments Corporation of India.

(The above story first appeared on LatestLY on Jan 01, 2024 01:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).