Hello all #LEO Lovers and #Hive Friends
The rapid growth of Unified Payment Interface (UPI) in India has revolutionized digital payments within the country. UPI provides a fast, secure, and real-time method for making financial transactions. Anyone with a bank account can easily generate a QR code to receive payments, making it a widely adopted and effective method. From small fruit and vegetable vendors to major shops, UPI QR codes can be found everywhere. The number of UPI users and the total transaction amount are continuously increasing, with projections indicating a 60% growth in transaction volume by 2023. P2M (person-to-merchant) transactions are currently more popular than P2P (person-to-person) transactions. The Reserve Bank of India (RBI) has rolled out various user-friendly measures to enhance the UPI experience and provide an additional layer of security. As per data available till Dec'23, total 522 Banks were live on UPI, with 12,020.23 (in Mn) of volume and has total Value of18,22,949.42 (in Cr.) transections. Let's take a closer look at some of the significant changes implemented for UPI this year.
The first update involves implementing a four-hour time limit for transactions exceeding Rs. 2000 to a new recipient, aimed at mitigating fraud incidents. This feature proves instrumental in reducing both fraudulent transactions and those made in error. The allocated four-hour window empowers users to amend or cancel transactions, enabling adjustments to the amount sent. For instance, if a user realizes they made an incorrect transaction via UPI, the four-hour timeframe provides ample opportunity to rectify the mistake. In the event of an account compromise, users also have sufficient time to annul fraudulent transactions and take corrective measures.
Second update is regarding the transaction limits. The daily transaction limit for standard UPI transactions is increased from its current amount to one lakh rupees. The transaction limit for payments to educational institutes and hospitals was already raised to five lakh rupees in the last month of 2023. This is very useful for many users and helps in smooth and quick transactions for hospitals and educational institutes.
Next update is regarding the cash withdraw the cash form raw. At present the debits cards are required to withdraw the cash form ATM machines. But now the cash withdraw by scanning a QR code at UPI ATM machines will be possible. The UPI ATM were already installed at many places which facilitate the users to withdraw cash form their bank account just my scanning the QR code.
The use of UPI light is also a good addition which enable the users to make small transections in offline mode using short-range Wireless technology, making transactions even more convenient by enabling simple tap-to-pay functionality. This facility is for transections ranging form rupees 200 to rupees 500.
Overseas Transection using UPI
The UPI-PayNow linkage allows users to receive remittances from Singapore directly in their Indian bank accounts in real time. Popular banks like SBI Axis Bank, ICICI Bank, and popular apps like BHIM, PhonePe, and Paytm provide access to this service. This breakthrough feature enables users to make transactions using bank and UPI apps without having to visit a physical bank branch. While some bank apps already had this functionality, NPCI has expanded it to more third-party applications, giving customers the freedom to choose their service provider. This achievement is the result of joint efforts by the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS). The UPI-PayNow linkage is secure, safe, instant, and reliable, allowing users to utilize it 24/7, 365 days a year. Additionally, extending this facility to more third-party apps is a significant advancement for small and frequent remittances and is expected to help reduce service fees.
These changes will positively impact the UPI ecosystem by promoting account usage and maintaining a secure payment environment while increasing transaction efficiency.
What are your view let me know in comment section.
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