Recent Changes In UPI That Ease Your Daily Transactions - Latest Update


The world of digital transactions is evolving, with UPI (Unified Payments Interface) standing at the forefront, altering our buying habits. Even for purchasing candies or costly goods, UPI has become indispensable. In 2023, UPI facilitated 117.6 billion transactions, a huge rise compared to the 74 billion transactions in 2022 and 38.7 billion transactions in 2021. UPI underwent many latest advancements focusing on improving security, also expanding transaction limits, and integrating UPI into ATMs. Here are 5 such changes that can help you.


Transaction Cap For Enhanced Security 


If the first UPI transaction between two customers, i.e. you are sending money to a recipient for the first time above Rs 2000, then there will be a time restriction of four hours for the next transaction. It means the money will be credited to the recipient's account only four hours after you make the transaction. This feature will make the transaction more secure and will help in preventing scams. 


The normal transaction limit for UPI is capped at Rs 1 lakh, except in a few categories like capital markets (AMC, broking, mutual funds, etc.), collections (credit card payments, loan re-payments, EMI), insurance, etc., where the transaction limit is Rs 2 lakh




Rise in Transaction Limits For Hospitals & Colleges


The healthcare institutions now benefit from an increased UPI transaction limit, raised from Rs 1 lakh to Rs 5 lakh as of December 8. RBI announced this revision on December 8, 2023, in the Monetary Policy Meeting to encourage the use of UPI in critical sectors like healthcare and education. In December 2021, the transaction limit for UPI payments for Retail Direct Scheme and IPO subscriptions was increased to Rs 5 lakh. 


ATMs with UPI Integration


UPI now manages over 75 per cent of retail digital payments in India, and the introduction of UPI ATMs marks a monumental shift in transaction convenience and security. Hitachi Payments Service Limited launched Hitachi Money Spot UPI ATMs as a white-label ATM (WLA) last year. Then several public and private banks followed with similar ATMs. While normal cardless cash withdrawals rely on mobile numbers and OTPs, the UPI-ATM operates through QR-based codes. To access this service, users must only have a UPI application installed on their Android or iOS devices.


UPI In the Secondary Market


NPCI launched the UPI feature for stock trading in the secondary market on January 1, 2024. The initiative is in its beta testing phase for the equity cash segment available only to limited customers and aims to streamline trading and enhance security and profitability for investors.

The beta phase currently has the trading app Groww as the brokerage platform and also has UPI apps such as BHIM, Groww, and YES PAY NEXT participating in it.


Deactivation of Dormant UPI IDs


NPCI has announced the deactivation of UPI IDs inactive for over a year. For users who have not used a UPI ID for over one year, it will get deactivated and they will have to re-register on their UPI app if they wish to continue using the service.

NPCI said that UPI payment apps such as PhonePe, Google Pay, PayTM, etc., are required to verify and maintain active UPI IDs. So, if you have a UPI ID that hasn't been used in a long time, make at least one payment soon to avoid the deactivation of that ID



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Good News: Forgot ATM Card At Home? Now You Can Withdraw Cash Using UPI

 




We have all been in a situation when we are in urgent need of hard cash but don’t have our ATM card on us. But, the one thing that we are always (like 99% of the time) is our phones. National Payments Corporation of India (NPCI) understands that and has unveiled UPI ATM cash withdrawal capabilities. This innovative solution is aimed at simplifying the process of cardless cash withdrawals at ATMs, especially during emergencies.


The feature dubbed Interoperable Cardless Cash Withdrawal (ICCW) will allow you to seamlessly use your smartphone and preferred UPI app to easily dispense cash at ATMs. Continue reading below to learn how you can also use UPI to withdraw cash from ATMs.


A Guide to Withdraw Cash Using UPI ATM

If you find a UPI-compatible ATM, follow the steps below to withdraw cash from the ATM using your favorite UPI app:


From the options on the screen, you have to select the “UPI Cardless Cash” or “UPI Cash Withdrawl” option.


Proceed to enter the amount you wish to withdraw in 100, 500, 1,000, 2,000, and 5,000 denominations (depending on the ATM).


In the next step, the machine will generate a single-use QR code for your chosen amount.


Moreover, the NPCI has partnered with Hitachi Payment Services to launch the first-ever UPI ATM in India. The White Label ATM (WLA), dubbed as the Hitachi Money Spot UPI ATM, will facilitate QR-based cardless cash withdrawal.


How Is UPI ATM Different from Cardless Cash Withdrawal?

With UPI-based cash withdrawal, you can enjoy the same seamless benefit as cardless cash withdrawal. However, the key difference is that you do not need to provide your phone number and rely on OTPs to verify your transaction. With the UPI ATM functionality, all you need to do is scan the displayed QR code on your smartphone. Union Minister Piyush Goyal posted a video on X (formerly Twitter) showcasing this feature in action:


Also, while using UPI ATMs, the withdrawal limit is set at Rs 10,000, and you will be able to easily switch between different accounts from your installed UPI app. The cash withdrawal will be part of your existing daily UPI transaction limit, so be careful while withdrawing money from ATMs.









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How Bank of Baroda(BoB) customers can scan UPI QR code and pay via digital rupee


Bank of Baroda (BoB) today announced that it has enabled CBDC UPI QR Interoperability functionality for pilot users on the Bank of Baroda Digital Rupee app.


The launch of this feature will pave the way for seamless transactions between a customer and a merchant. For customers, it provides ease and convenience to use the Bank of Baroda Digital Rupee app to scan any UPI QR at a merchant outlet and transact. Merchants can now accept digital rupee [CBDC-R] payments from customers using their existing QR payment acceptance terminal, without being onboarded as a CBDC merchant.


At the launch, Joydeep Dutta Roy, Executive Director, Bank of Baroda said, “CBDC UPI QR interoperability will further accelerate the adoption of digital rupee [CBDC-R] among customers and provide wider payment acceptance infrastructure to promote usage of digital rupee at merchant outlets. Customers can now use their digital currency available in their digital rupee [CBDC-R] wallet and scan to pay across any UPI QR code. Similarly, merchants need to only display their existing single QR code, which can accept payments in both CBDC and UPI. With this, we believe that the digital rupee ecosystem can scale up quickly."


CBDC UPI QR interoperability functionality on the Bank of Baroda Digital Rupee app is being rolled out to pilot users across 26 cities (i.e. Delhi, Mumbai, Bhubaneswar, Chandigarh, Ahmedabad, Bengaluru, Hyderabad, Guwahati, Gangtok, Indore, Bhopal, Pune, Lucknow, Patna, Kochi, Shimla, Goa, Jaipur, Kolkata, Chennai, Ranchi, Nagpur, Visakhapatnam, Varanasi, Pondicherry, and Vijayawada) in a phased manner starting with Android, and will be available to iOS users shortly.


What is Digital Rupee?

The Digital Rupee is legal tender issued by the Reserve Bank of India (RBI) in Digital form. 


What is CBDC UPI QR interoperability?

The CBDC UPI QR interoperability is an extension to the CBDC-Retail pilot launched by the RBI last year.


Customers of these five banks can scan the UPI QR code and pay via digital rupee

Kotak Mahindra Bank 

Yes Bank 

Axis Bank 

HDFC Bank 

Canara Bank 


Bank of Baroda is one of the leading commercial banks in India. At 63.97% stake, it is majorly owned by the Government of India.


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Different modes of Payment

As the commerce and economy expand, volume and variety of transactions expand where there is a need to exchange the money. Using cash for each of these transactions is neither feasible nor practically possible. There are concerns regarding security and transportation of cash in cases where large amounts of money are involved. Banks support ease and velocity in such cases by offering various payment systems as solutions.
What are Payment Systems?
A Payment System is a mechanism that facilitates transfer of value between a payer and a beneficiary by which the payer discharges the payment obligations to the beneficiary. Payment Systems are the medium to transfer funds from one person to another that facilitate businesses and economies. Payment system enables two-way flow of payments in exchange of goods and services in the economy. Payment systems help consumers to transfer funds to each other. Cash is the traditional and most widely used payment instrument that consumers use in their daily lives to purchase goods and services. Banking channels also provide other payment instruments through different platforms and these are also widely used in commerce. Payment systems comprises of instruments through which payments can be made, rules, regulations and procedures that guide these payments, institutions which facilitate payment mechanisms and legal systems etc. that are established to facilitate transfer of funds between different participant institutions. Payment systems are used by individuals, banks, companies, governments, etc. to make payments to one another.
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How to transfer money using UPI

Digital payment and cashless is the new and upcoming way of payment system and the recently launched Unified Payment Interface (UPI) is likely to gain popularity with the government's recent move of banning Rs500 and Rs1000 notes.
UPI enabled apps allows transaction to be done through any smartphone, using VPA-Virtual Payment Address. It reduces the cost of transaction compared to ATM or cheque. It is to make payments convenient and enable users to complete transactions in lesser time by reducing the number of steps. The transactions done through UPI app can be done 24/7 with immediate transfer of money from one bank account to other. The main attractive point of UPI is the money is all these transactions can be done without sharing any personal details like bank account or credit/debit card number. UPI-enable app allows transfers up to Rs.1 lakh and charges 50paise per transaction.
We tell you how to transfer money using UPI enabled apps
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