New Year, New UPI: Key Changes Enhance Online Banking Experience

New Delhi: The New Year brings significant enhancements to the Unified Payments Interface (UPI), aiming to elevate the digital banking and payment transaction landscape.

1. Inactive UPI IDs: The National Payments Corporation of India (NPCI) has mandated the deactivation of inactive UPI IDs, dormant for over a year, by payment apps.
2. ‘UPI for Secondary Market’ Launch: NPCI introduces the ‘UPI for Secondary Market’ in Beta, with HDFC Bank conducting transactions. Investors can block funds, debited only upon trade confirmation during settlement. Groww, BHIM, and YES PAY NEXT are among the participating UPI apps.
3. Transaction Limit Boost for Hospitals and Educational Institutions: The Reserve Bank of India (RBI) raises the UPI transaction limit for hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh.
4. Uplift in UPI ATMs: Hitachi Payment Services unveils the nation’s first UPI-ATM as a White Label ATM (WLA) in collaboration with NPCI.
5. Time Limit for First Payments: RBI proposes a 4-hour time limit for users making initial payments exceeding Rs 2,000 to new recipients.

These updates mark a unique and comprehensive evolution, promising to enhance security, accessibility, and efficiency in the UPI ecosystem.