A lot is going to change for UPI users starting from January 1, 2025. The Reserve Bank of India (RBI) is implementing new rules to enhance the convenience of users in UPI transactions. Under the new rules, users will be allowed to send more money than before. Additionally, several other important changes will be included in UPI. Let’s take a look at the new UPI rules set to take effect in the new year.
UPI123Pay Limit Increased
The RBI has decided to raise the transaction limit for UPI123Pay, a service designed for feature phone users. From January 1, 2025, users will be able to make payments of up to Rs 10,000 per day through UPI123Pay, compared to the previous limit of Rs 5,000. This increase gives UPI123Pay users the ability to transfer more money.
However, it is worth noting that the transaction limit for smartphone apps like PhonePe, Paytm, and Google Pay remains the same as before. Users can still transact up to Rs 1 lakh per day through UPI. However, in specific cases, such as college fees and hospital payments, users can make payments of up to Rs 5 lakh (UPI Update).
UPI Circle
The UPI Circle feature was introduced in 2024, and from next year, it will be implemented on all UPI-supported platforms. Currently, BHIM app users can take advantage of UPI Circle. This feature allows users to include friends or family members so the second user can make payments without a bank account. The primary user can set a limit on how much money the second user is allowed to spend.
The UPI Circle feature will work with two options:
- Full Delegation: With full delegation, the secondary user will be authorized to initiate and complete the transaction within a fixed limit.
- Partial Delegation: With partial delegation, the secondary user can only initiate the transaction, and the primary user will need to complete it using the UPI PIN.
Rules for UPI Circle
- A primary user can add up to 5 secondary users.
- Each transaction will have a limit of Rs 5,000, with a monthly limit of Rs 15,000.
- Passcode and biometric authentication will be mandatory for secondary users on UPI apps.
New UPI Transaction Figures
The Finance Ministry recently released new data on the Unified Payments Interface (UPI), which shows a remarkable 15,537 crore transactions from January to November this year. The total value of these transactions has reached Rs 223 lakh crore.