- By Imran Zafar
- Tue, 31 Dec 2024 11:45 AM (IST)
- Source:JND
From January 1, 2025, Unified Payments Interface (UPI) users will experience significant changes as the Reserve Bank of India (RBI) implements new rules to enhance convenience and transaction capabilities. The updated regulations will allow users to send higher amounts through UPI, alongside additional features to improve functionality.
Increased Limit For UPI 123Pay
The daily transaction limit for UPI 123Pay, a service tailored for feature phone users, will double to Rs 10,000 starting January 2025, up from the previous Rs 5,000 cap. This update aims to provide greater financial flexibility to feature phone users.
Meanwhile, the transaction limits for smartphone-based UPI platforms like PhonePe, Paytm and Google Pay remain unchanged. Users can continue to transact up to Rs 1 lakh per day, with provisions for payments up to Rs 5 lakh in special circumstances, such as paying college fees or hospital bills.
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UPI Circle Feature Expansion
Launched in 2024, the UPI Circle feature will be extended to all UPI-supported platforms from the new year. Currently exclusive to the BHIM app, this feature allows users to add friends and family as secondary users, enabling payments without a bank account. The primary user sets a spending limit for secondary users.
UPI Circle offers two delegation modes:
Full Delegation: Secondary users can initiate and complete transactions within the assigned limit.
Partial Delegation: Secondary users can only initiate transactions, which must be completed by the primary user using their UPI PIN.
Rules For UPI Circle include:
A primary user can add up to five secondary users.
Transaction limits are capped at Rs 5,000 per transaction and Rs 15,000 monthly per user.
Secondary users must authenticate with passcodes or biometric data.
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UPI Growth Milestones
The Finance Ministry has reported impressive UPI performance figures for 2024, with 15,537 crore transactions conducted between January and November. The total transaction value has surged to Rs 223 lakh crore, underscoring UPI's growing adoption across the country. These new updates reflect RBI's ongoing efforts to expand UPI's accessibility and usability, catering to diverse user needs while maintaining security and efficiency.