How the Latest UPI Rule Changes Will Impact Your Daily Transactions

1. How the Latest UPI Rule Changes Will Impact Your Daily Transactions The backbone has now become India digital economy, UPI (Unified Payments Interface). UPI has become the most preferred way when it comes to paying your taxi driver, purchasing groceries, sending money to a friend and so on. Nevertheless, the UPI Rule Changes Effective Today: What is New and How it will Affect You may introduce some changes to your everyday financial behavior. We have discussed in this blog, how these changes of rules will impact on ordinary people who use UPI to make their daily transactions. What has Changed in UPI as of Today? The recent UPI release contains a list of both policy and technical changes that are introduced to enhance the security of users and system performance. These are the most significant changes which are already live: 1. High Value Payments Verified biometrically Now, any transfer involving more than 1 lakh rupees will cause the UPI apps to require biometric authentication, in the form of fingerprint or facial recognition, or secondary form of OTP. 2. Increased Payments Transactions Limits of Specific Payments They have allowed an extension in transaction cap to payment of healthcare and education services to 5 lakhs. This enables more significant payments that need to be made, to be made without having to make numerous transfers. 3. Deactivation of Inactive UPI IDs In case you are not using your UPI ID within the 12 months of inactivity, it can be disabled automatically. This would be in efforts to curb frauds of dormant accounts. 4. Revisions of Fee Merchant Transaction fee structures can be different and newer as businesses now can avail the old system of merchants categorizations. Even though the majority of the fees are waived on person-to- person transactions, merchants must remain vigilant. How These UPI Changes Affect Your Daily Payments How These UPI Changes Affect Your Daily Payments Let’s explore some real-life situations to understand how the UPI Rule Changes Effective Today: What’s New and How It Impacts You could change your habits:

2. Buying Chai or Street Food Buying Chai or Street Food No real change. If you're paying small vendors daily using UPI, everything stays the same. But if your UPI ID is dormant, those quick transactions won’t work unless reactivated. Paying Rent or Bills If your rent or utility bill is above ₹1 lakh, biometric verification will be required. Ensure your app has permission to access your fingerprint or face ID to avoid payment failure. Paying Hospital or School Fees Paying Hospital or School Fees You can now pay up to ₹5 lakhs in a single transaction for medical or educational expenses. This removes the inconvenience of splitting large amounts into smaller transactions. Shopping Online or at Retail Stores Shopping Online or at Retail Stores Cashback offers and transaction fees might vary slightly depending on the merchant's new category. Keep an eye out for app notifications explaining any fee changes. How to Prepare for a Smooth Transition How to Prepare for a Smooth Transition • Make sure your UPI apps are up to date. • Switch on the biometric authentication on your phone and app. • A small transaction can be made to keep your ID alive even though you have forgotten about UPI for some time. Look out on the messages about change of merchant fee on the app. • Maintain records of big payments as they will be easier to dispute. Watch Outs What to Watch Out For • Failed Transactions: Payments are not likely to go through when your app has not been made up to date, especially with regard to high-value purchases. • Completely Unanticipated Charges: There are also the surprise charges wherebysome merchants can transfer new transaction charges to their customers, particularly those making large purchases. Disabled UPI IDs: Another thing that can happen to you today is your UPI handle stops working. Conclusion

3. Such updates might seem small, yet they are to make your UPI experience more comfortable, safe, and comfortable as it can be. The UPI Rule Changes Effective Today: What Is New and How It Can Affect You guarantee that the system will further increase whereas shielding the users against the threats and inefficiencies. Being a daily user, just following several smart steps, you will be able to prevent failures of your payments, as well as to remain in compliance with the new regulations.