UPI Payment New Rule 2025:The face of digital payments is about to change in India. 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 impact ordinary consumers, but will also open up new opportunities for merchants and fintech companies.
The Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) have jointly prepared 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 rule |
| UPI 123Pay limit | Increase from ₹5,000 to ₹10,000 |
| Prepaid Payment Instruments (PPI) | Will connect to third-party UPI apps |
| OTP based service | Mandatory for UPI payment |
| 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 |
UPI 123Pay: Make payment even without internet
UPI 123Pay is a feature 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 helpful in promoting digital payments in rural and semi-urban areas.
Payment Modes of UPI 123Pay
- 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, prepaid payment instruments (PPIs) such as wallets and prepaid cards with full KYC will now be able to be linked to third-party UPI apps. This means that now you will be able to make UPI payments directly from your digital wallet. This feature will provide greater flexibility to consumers and make digital payments more convenient.
Requirements for PPI to UPI payment
- Wallet must have complete KYC
- Wallet has 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 OTP requirement is expected to reduce cases of fraud and provide additional assurance to users about the safety of their funds.
Benefits of OTP security
- Protection from unauthorized transactions
- User identity verification
- reduction in errors
UPI on feature phones: A new chapter of digital inclusion
Under the new rules, feature phone users will also now be able to make UPI payments easily. This feature will be especially useful for those who do not have a smartphone or who live in areas that lack internet connection. This move is expected to bring a major change in India’s digital inclusion.
UPI methods on feature phones
- missed calls
- IVR Number
- Sound-Based Payment
- ussd code
UPI payment from wallet: New facility, new opportunities
From January 1, 2025, UPI payments can also be made through fully KYC digital wallets. This feature will allow users to make UPI payments directly using their wallet balance. This will provide new opportunities to digital wallet companies and more choices to consumers.
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 ₹1 lakh. This limit is for individual users. Separate limits have been set for traders and businesses. This limit has been put in place 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 rule
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 with UPI and use it for UPI payments. This facility will be especially useful for students and low income group.
Benefits of combining prepaid cards and UPI
- more flexibility
- low cost digital payments
- No bank account required
UPI Auto Pay: Improvements in recurring payments
Some changes have also been made in the UPI Auto Pay facility. You can now set up recurring payments 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 period
UPI Lite: 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 small daily expenses.
Key Points of UPI Lite
- Transactions up to ₹500
- without 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 time. These may include UPI payments from credit cards, international UPI transactions, and AI-based security measures. These innovations will further evolve India’s digital payments 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 guarantees are made as to its completeness or accuracy. We are not responsible for any loss or damage caused by the use of this information. Please seek appropriate professional advice before making any important decisions.
