Big change in UPI Payment: New rule will be implemented from January 1, 2025, know what is going to change in the next 48 hours
UPI Payment New Rule 2025 : The face of digital payments in India is going to change. In the next 48 hours, i.e. from January 1, 2025, some important rules related to Unified Payments Interface (UPI) are going to change. These changes will not only affect common consumers but will also open new opportunities for merchants and fintech companies.
The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have jointly formulated these new rules. Their aim is to make UPI payments more secure, convenient and widespread. Let us know what these new rules are and what impact they will have on your daily transactions.
UPI Payment New Rules 2025: At a Glance
| Description | New Testament |
| UPI 123Pay Limit | increased from ₹5,000 to ₹10,000 |
| Prepaid Payment Instruments (PPI) | Will connect to third-party UPI apps |
| OTP based service | Mandatory for UPI payments |
| UPI on feature phones | possible even without internet |
| UPI payment from wallet | Available upon completion of KYC |
| Transaction Limit | Up to ₹1 lakh per day |
Table of Contents
UPI 123Pay: Make payments even without internet
UPI 123Pay is a facility that allows feature phone users to make UPI payments even without an internet connection. From January 1, 2025, the transaction limit of this service will increase from ₹5,000 to ₹10,000. This change will prove to be helpful in promoting digital payments in rural and semi-urban areas.
UPI 123Pay Payment Modes
- IVR (Interactive Voice Response) Number
- missed calls
- OEM-embedded apps
- Sound-based technology
Confluence of Prepaid Payment Instruments (PPI) and UPI
Under the new rules, fully KYC compliant prepaid payment instruments (PPIs) such as wallets and prepaid cards will now be able to connect to third-party UPI apps. This means that you will now be able to make UPI payments directly from your digital wallet. This facility will provide more flexibility to consumers and make digital payments more convenient.
Requirements for PPI to UPI payments
- Wallet must have complete KYC
- Wallet needs to be linked to UPI app
- First the payment will be approved, then you will get access to the UPI app
OTP based security: A new level in UPI payments
To further strengthen security, NPCI has made OTP (One-Time Password) based service mandatory for UPI payments. This new rule will come into effect from January 1, 2025. The requirement of OTP is expected to reduce cases of fraud and users will get additional assurance of the safety of their money.
Benefits of OTP security
- Protection against unauthorized transactions
- Verifying the user’s identity
- Reduction of errors
UPI on feature phones: A new chapter in digital inclusion
Under the new rules, feature phone users will now be able to make UPI payments easily. This facility will be especially useful for those who do not have a smartphone or who live in areas with lack of internet connection. This move is expected to bring a big change in India’s digital inclusion.
UPI Methods on Feature Phones
- missed calls
- IVR Number
- Sound-based payment
- USSD Codes
UPI Payments from Wallet: New Convenience, New Opportunities
From January 1, 2025, UPI payments can also be made from fully KYC compliant digital wallets. This facility will allow users to make UPI payments directly using their wallet balance. This will give new opportunities to digital wallet companies and give consumers more options.
Benefits of UPI payment through wallet
- Fast and convenient transactions
- Better utilization of wallet balance
- No bank account required
UPI transaction limit: What is the new rule?
Under the new rules, the daily limit for UPI transactions will be up to ₹1 lakh. This limit is for individual users. A separate limit has been set for merchants and businesses. This limit has been set to reduce the risk of fraud and ensure the security of large transactions.
UPI Transaction Limit Details
- Daily limit: ₹1 lakh
- Per transaction limit: ₹20,000
- Merchant Payment Limit: ₹2 lakh per day
UPI and prepaid cards: Impact of the new rules
Under the new rules, interoperability between prepaid cards and UPI will increase. This means that now you will be able to link your prepaid card to UPI and use it for UPI payments. This facility will be especially useful for students and low-income groups.
Benefits of combining prepaid cards and UPI
- Greater flexibility
- Low-cost digital payments
- No bank account required
UPI Auto Pay: Improvements in recurring payments
Some changes have also been made to the UPI Auto Pay feature. You can now set up recurring payments of up to ₹15,000 without any additional authentication. This will make regular payments like bill payments, subscriptions and EMIs more convenient.
New Features of UPI Auto Pay
- High limit: Up to ₹15,000
- without additional authentication
- Flexible payment term
UPI Lite: The new solution for small transactions
UPI Lite is a new feature that makes small value transactions more simple. Under this, you can make transactions up to ₹500 without a PIN or internet connection. This feature will be especially useful for daily small expenses.
Highlights of UPI Lite
- Transactions up to ₹500
- No PIN or internet
- Fast and secure
New Features in UPI: A Glimpse of the Future
Many more new features are likely to be added to UPI in the coming times. These may include UPI payments via credit cards, international UPI transactions, and AI-based security measures. These innovations will further develop India’s digital payment landscape.
Possible future UPI features
- Biometric Authentication
- Blockchain-based UPI
- Virtual Currency Integration
Disclaimer:
This material is intended to provide general information only. It is not a substitute for legal, financial or medical advice of any kind. Every effort has been made to provide accurate and up-to-date information but no guarantee is made as to its completeness or accuracy. We are not responsible for any loss or damage arising from the use of this information. Please seek appropriate professional advice before making any important decisions.
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