India: New UPI Guidelines You Must Know

India's central bank the Reserve Bank of India (RBI) announced several changes to rules and regulations around United Payments Interface (UPI). The changes are effective starting January 1st, supposed to help expand the scope of UPI. Here's all you need to know.

UPI Transaction Limit Increased for Hospitals, Schools

Before January 1st, the transaction limit for hospitals and educational institutions was limited to ₹1 lakh (around $1200). Now the limit has been hiked to ₹5 Lakh (around $6000).

Inactive UPI IDs to be Deactivated

UPI IDs and numbers that have been inactive for one year or more will now be deactivated. This has been done "to prevent the inadvertent transfer of money to unintended recipients in case customers change their mobile number without disassociating their old number from the banking system."

Transaction Limit Hiked for UPI Lite Wallets

Transaction limits for UPI Lite wallets that allow the user to make payments without an internet connection have been increased from ₹200 to ₹500. The maximum amount that can be transferred online using UPI lite is ₹2,000.

No Authentication Needed For UPI Auto Payments

UPI auto payments of up to ₹1 lakh — for credit card repayments, mutual fund subscriptions and insurance premiums will no longer require an additional factor authentication (AFA). Before this, payments of more than ₹15,000 required AFA authentication.

Interchange Fee On UPI Merchant Payments

Interchange fee, which are paid by a merchant when a customer processes a transaction has been set to 1.1 per cent where the transaction value is less than Rs 2,000.