UPI in 2024: Unused ID Deactivation, QR Code Cash Withdrawal

Commencing January 1, 2024, several modifications and measures introduced by The Reserve Bank of India (RBI) have been implemented in the Unified Payments Interface (UPI) to broaden the reach of the real-time payment system.

Here are the Changes

NPCI (National Payments Corporation of India) has directed payment apps like Paytm, Google Pay, PhonePe, and banks to deactivate UPI IDs and numbers unused for over a year. If a UPI ID or linked mobile isn't utilized for transactions within a year. This measure aims to prevent fraud accounts and potential misuse, with NPCI overseeing all retail payment systems in India. Users on platforms like Google Pay and PhonePe should verify their UPI IDs and associated phone numbers to ensure activity and avoid deactivation.

NPCI has revealed plans to introduce 'UPI for Secondary Market' in its Beta phase. This collaborative initiative includes key stakeholders, enabling limited pilot customers to reserve funds, which will be debited upon trade confirmation during settlement. Clearing Corporations will handle payouts on a T 1 basis.
The NPCI has established a new maximum daily payment limit of Rs one lakh for UPI transactions. Nevertheless, on December 8, the RBI increased the UPI transaction limit to Rs five lakh specifically for healthcare and educational institutions, up from the previous limit of one lakh rupees.
RBI is set to roll out UPI ATMs nationwide, enabling cash withdrawal through QR code scanning. Hitachi Payment Services has introduced the country's first UPI-ATM in collaboration with NPCI, functioning as a White Label ATM (WLA).

In response to the rise in online payment fraud, a 4-hour time limit has been established for users initiating their initial payment over Rs 2,000 to recipients with whom they haven't transacted before. This measure aims to enhance security and control for users.
In early 2023, an announcement was made regarding a modification: a 1.1 percent interchange fee for specific merchant UPI transactions exceeding Rs 2,000 conducted through prepaid payment instruments (PPI) like online wallets. Customers should be aware that there are no hidden fees during transactions, fostering transparency and trust.
Beginning January 1, 2024, mobile phone users can acquire new SIM cards without undergoing a paper-based know-your-customer (KYC) procedure, according to the Department of Telecommunications (DoT).
While there hasn't been an official announcement, there are indications that the "Tap and Pay" feature might soon be available for UPI users.