Alert! UPI Transaction: NPCI’s New Rules Applicable From Jan 1 2024

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upi transaction rules 2024

National Payment Corporation of India has announced 5 major rule changes that will be applicable from 1st January 2024. These are not just basic rules but it is also concerning for some vendors and many of them have decided to not accept UPI payments. But Are these rules that concerning? Let’s Find out.

NPCI has ordered 5 major changes in UPI transactions to make it safe and reliable.

Here are the 5 Rules that will be applicable from January 1, 2024.


1. UPI For Secondary Market

Funding money to the broker can be stressful sometimes. Because of various issues, the chances of opportunity loss get higher. To avoid this NPCI has introduced ‘UPI for Secondary Market,’ which is currently in its Beta phase. This app allows a select group of pilot customers to secure funds after trade confirmation and settle payments on a T1 basis through Clearing Corporations.

2. Deactivate All Dormant Account

If an account is not used for more than a year, it goes into Dormant. NPCI has instructed banks and online payment applications, such as Google Pay, Paytm, and PhonePe, to deactivate any UPI IDs that have been inactive for more than a year.

3. Withdraw Money Using UPI

Till 2023, UPI was only used to make payments to the merchant or send money to someone. But Now from 1st January 2024, You will be able to withdraw money as well using UPI. NPCI and Hitachi Payment Services have collaborated to introduce India’s inaugural UPI-ATM, allowing users to withdraw cash by scanning a QR code. This innovative approach aligns with the Reserve Bank of India’s (RBI) plans for a widespread rollout of UPI ATMs across the country. The initiative represents a step forward in leveraging technology to enhance the accessibility and convenience of cash withdrawal through the Unified Payments Interface (UPI) platform.

4. Raised Transaction Limit to Rs 5 Lakhs

The central bank has made a big change to how much money you can transfer using UPI. The limit used to be Rs 1 lakh per transaction, but now it’s been increased to Rs 5 lakh per transaction. This new limit applies specifically when you’re making payments to hospitals or educational institutions. The goal behind this decision is to encourage more people to use UPI for these types of transactions.

5. Now Reverse Your Money within 4 Hours

To boost the safety of UPI transactions, the RBI has suggested a four-hour time limit for users making their first payments over Rs 2,000 to new recipients. This move adds an extra layer of control and security, giving users the flexibility to undo or change transactions within that specific time frame.

This is the concerning rules that most of vendor has talked about when we tried to reach out to them. They believe this rule can lead to fraud as the customer would pay the money while buying the goods but later they can reverse the money and merchant will be in loss.

What do you think about these new rules of UPI?

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