UPI Payment New Rule / Change in this rule of UPI from January 1! RBI approves new rule related to wallet payment

UPI Payment New Rule: Major changes will be implemented in Unified Payments Interface (UPI) from January 1, 2025. The Reserve Bank of India (RBI) has changed the limit of UPI and wallet payments by approving the new rules. Now users using UPI 123Pay will be able to transact up to Rs 10,000 instead of Rs 5,000. This step has been taken to promote digital payments and keep in mind the convenience of the users.

Wallet KYC and linking required

To take advantage of the new rules, prepaid wallets like PhonePe, Paytm and UPI wallets will have to complete KYC. Also, it will be mandatory to link the wallet to the respective app. For UPI payment from the wallet, the transaction has to be approved first, after which access to the UPI app will be available. However, under these changes, users will not be able to link other banks or wallets directly.

OTP based payment system

Keeping in mind the payment security, the National Payment Corporation of India (NPCI) has made OTP based system mandatory for payments through UPI. This facility will come into effect from January 1, 2025. OTP based service has been added to the existing options of UPI 123Pay. Now users will be able to make payments through OTP along with IVR numbers, missed calls, OEM-Embedded Apps and sound based technology.

Features of UPI 123Pay

UPI 123Pay works without internet, making it extremely beneficial for users who have limited internet access. Now large transactions can be completed with speed and security.

Changes were made in August 2024

NPCI had increased the payment limit for taxpayers to Rs 5 lakh in August 2024. Apart from taxpayers, this facility is also applicable on transactions related to education, hospital, RBI Retail Direct Scheme, and IPO. However, banks can set the payment limit on their own. For example, this limit is Rs 1 lakh in HDFC and ICICI Bank, while in Allahabad Bank it is only Rs 25 thousand.

Security and capacity will increase

The new rules will increase the scope of digital payments. The working capability of prepaid payment instruments (PPI) will also be strengthened. With OTP based security measures, now payments will not only be faster but also secure.

Conclusion:

These changes coming into effect from January 1, 2025 will make the use of UPI and digital wallets easier and safer. This is another strong step towards the Digital India mission, which will promote cashless transactions across the country.