Hello from Brandsjet, your trusted Growth as a Service partner in India! In the realm of digital payments, it’s essential to stay updated with the latest developments. Today, we’re focusing on significant updates from the Reserve Bank of India (RBI) concerning the Unified Payments Interface (UPI) system, a key component in the digital transaction landscape. These changes, effective from January 1, 2024, are pivotal in enhancing the security and efficiency of digital transactions. Let’s explore how these new guidelines will impact businesses and consumers.
Overview of RBI’s New UPI Guidelines for Digital Payment :
1. Enhanced Security Measures:
The RBI’s initiative to modify the UPI system is primarily aimed at combating the rise in cyber fraud associated with UPI transactions. This is a significant move to safeguard the interests of digital payment users across the country.
2. Revised UPI Transaction Limits:
The daily payment limit via UPI will be capped at ₹1 lakh.
Special payment limits will be introduced for transactions involving hospitals and educational institutions, reflecting the RBI’s commitment to facilitating high-value payments in these crucial sectors.
3. Settlement Time for HighValue Transactions:
UPI transactions exceeding ₹2,000 will now have a settlement time of 4 hours. This measure is designed to provide an additional layer of security against fraudulent activities.
4. Cancellation and Refund Flexibility:
In a consumer-friendly move, UPI transactions can now be cancelled at any point, allowing for the reversal of payments back to the original account. This feature enhances the flexibility and control users have over their transactions.
5. Service Charges for HighValue Transactions:
For transactions over ₹2,000, a 4% charge may be applicable from January 1, 2024. This could lead to some businesses opting not to accept UPI for bills exceeding this amount.
6. Enhanced Transparency in Contact Updates:
When updating a mobile number in UPI, the new number will be displayed, ensuring transparency and security in transactions.
7. Bank Balance Requirement and Overdraft Options:
UPI payments will require a bank balance, but users will have options for overdrafts and credit lines based on their credit scores. Additionally, ATMs will soon facilitate cash withdrawals using UPI QR codes.
8. Introduction of UPI Transaction Charges:
A 1.1% service charge will be introduced for UPI payments from January 1, 2024. This change aligns with modifications in other digital payment methods like NEFT, RTGS, and online payments.
9. Government and RBI’s Stance on Cyber Security:
These steps are part of the government and RBI’s broader strategy to curb the increasing incidents of cyber fraud in digital payments.
At Brandsjet, we understand the importance of adapting to these changes in the digital payment ecosystem. These new UPI guidelines are not just regulatory updates; they represent a significant shift towards a more secure and efficient digital economy. We are committed to helping you integrate these changes into your business models and digital strategies, ensuring you stay ahead in this new era of digital finance.
Stay informed and ahead of the curve with Brandsjet!