UPI 2024: A new year, new rules

The Unified Payments Interface (UPI), India's instant mobile payment system, is undergoing some major changes in 2024. These changes are designed to make UPI more secure, convenient, and efficient.

One of the most important changes is the deactivation of inactive UPI accounts. After a year of no activity, your UPI ID and linked phone number will be disabled for incoming transactions. This is to prevent fraud and to free up resources for active users.

The daily limit for UPI transactions has also been increased to Rs. 1 lakh. This will make it easier for businesses to accept UPI payments for larger transactions. However, there is a new 1.1% interchange fee on merchant UPI transactions above Rs. 2,000 made using online wallets. This means that you will pay a small fee if you use your Paytm or PhonePe wallet to make a large UPI payment.

To curb online fraud, a four-hour time limit will be applicable each time a user initiates the first payment exceeding Rs. 2,000 to another user with whom they have not previously transacted. This will give users time to think twice before making a large payment to someone they don't know.

UPI is also getting some new features in 2024. One of the most exciting is UPI "Tap and Pay," which will allow you to make contactless payments using your phone. This will make it even easier to pay for things like groceries and coffee.

Another new feature is UPI ATMs, which will allow you to withdraw cash from your bank account using a QR code. This will be especially convenient for people who live in areas without a lot of ATMs.

Overall, the changes to UPI in 2024 are positive. They will make UPI more secure, convenient, and efficient. However, it is important to be aware of the new interchange fee and the enhanced security measures for large transactions.

Here are some additional details about the changes to UPI:

• The deactivation of inactive UPI accounts will take effect on January 1, 2024.
• The new daily limit for UPI transactions is Rs. 1 lakh.
• The new interchange fee is 1.1%.
• The four-hour time limit for first-time large transactions will apply to all UPI transactions, regardless of the amount.
• UPI "Tap and Pay" is expected to launch in the first half of 2024.
• UPI ATMs are expected to be rolled out in major cities in 2024.