All you need to know about UPI payment rules that are changing in 2024

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Chandigarh, January 1

As the new year starts, there are certain changes in Unified Payments Interface (UPI) that have come into effect from January 1, 2024.

The National Payments Corporation of India (NPCI) has instructed payment apps such as Paytm, GPay, PhonePe, etc., and banks to deactivate UPI IDs and numbers that remain inactive for more than a year.

A 1.1 per cent interchange fee will be imposed on certain merchant UPI transactions above Rs 2,000, made by using prepaid payment instruments (PPI) like online wallets.

A 4-hour time limit will be applicable each time a user starts the first payment exceeding Rs 2,000 to another user with whom they have not previously transacted. This has been done in order to check rising cases of online payment fraud.

As per NCPI, the daily payment limit for UPI transactions will be Rs 1 lakh.

However, the RBI, in its December 8, 2023 order, had raised the transaction limit for UPI payments to hospitals and educational institutions toRs5 lakh.

RBI in collaboration with Japanese company Hitachi, will also roll out UPI ATMs all across India wherein one can scan a QR code to withdraw cash from bank account.