New UPI rule/restriction and relaxation introduced in New Year. With this, the security of money transactions sent through UPI has been enhanced. Here are 5 important things people should know about these new regulations that will come into effect from January 1, 2024.
1. Deactivation of unused IDs:
A rule has been issued to deactivate UPI IDs that have not been used for more than a year. With this, UPI IDs that have not been used for more than a year on apps like GPay, Paytm, PhonePe may become invalid.
2. Increase in hospital and educational institution cash transactions:
This provision may bring joy to parents and hospital patients. Because, henceforth, UPI payments can be made up to 5 lakhs in hospitals and educational institutions. 1 lakh limit has now been raised.
3. Auto-Payment New Rule
No additional authentication is required for UPI payments up to 1 lakh in Auto Payments for Credit Card, Insurance, Mutual Funds etc.
4. Changes in petty cash transactions
UPI Lite Wallet balance has been increased from Rs.200 to Rs.2000 for small money changers. It is designed to help people who make small transactions at small shops on a day-to-day basis.
5. Surcharge for Prepaid Transaction:
Henceforth, 1.1% fee will be charged on prepaid wallet transactions above Rs.2000.
A few more rules…
With the new regulation, to prevent wrongful remittances, from now on remittances above Rs.2000 to new users 4-hour window The rule is enforced. Thus, wrong or fraudulent transactions can be prevented immediately.
UPI ATM: Withdrawal facility by scanning QR Code at ATMs, and over the phone Tap and Pay Such facilities are to be brought.
