About UPI:

UPI- Unified Payment Interface was developed by the National Payment Corporation of India (NCPI) in 2016 to facilitate mobile phone-based online transactions on an immediate basis. UPI has been revolutionary in terms of the fund transfer system and is regulated by The Reserve Bank Of India.

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How to use UPI?

To get incorporated into this system, the mobile number of the user needs to be linked with a registered bank account. Then the user is required to create a UPI-Id by downloading particular payment apps like PhonePe, Google Pay, PayTM, etc their respective cellular phones. Once UPI-ID is created the user becomes eligible for the transaction of money with another UPI-Id holder or direct bank transfer.

Changes in the UPI Transaction System with effect from 01 January 2024:

1. Those UPI-Ids which has been dormant for a year will be deactivated by the respective payment apps.
2. The daily payment limit of UPI transactions has been extended to ₹ 1 lakh by NCPI.
3. RBI has raised the UPI transaction limit to ₹ 5 lakhs for payments to hospitals and educational institutions.
4. On using pre-paid payment instruments like online wallets an interchange fee of 1.1% will be charged on transactions above ₹ 2000.
5. A delay of four hours will be applicable in the transfer of the amount exceeding ₹ 2000 whenever the UPI transaction is made for the first time to a new UPI-id holder.
6. “Tap and Pay” functionality will be provided soon to UPI members using Near Field Communication (NFC) technology.
7. RBI is likely to collaborate with Hitachi, the Japanese company to develop UPI-based ATMs throughout the country that will scan QR codes to withdraw cash from the bank account.

Video credit: Study IQ

Conclusion:

With this information, we can say there are some good changes made which can be beneficial for us. I hope you will find this information useful.

Source credit: Study IQ YouTube channel.

Thumbnail credit: The Times of India