Starting January 1, 2025, significant changes are coming for those making UPI payments. The Reserve Bank of India (RBI) is revamping certain rules to enhance user convenience in UPI transactions. One major change includes an increase in the transaction limit for various UPI modes. This means users will be able to send more money than ever before. Let’s explore the new UPI regulations that will take effect in the new year.
UPI123Pay Limit Increased
RBI has announced a rise in the transaction limit for UPI123Pay, a service designed for feature phone users. A deadline was set for December 31, 2024, and if this deadline isn't extended, starting January 1, users will be able to make payments of up to Rs 10,000 per day through UPI123Pay, up from the previous limit of Rs 5,000.
With UPI123Pay, users can now transfer up to Rs 10,000 to any other UPI user. However, the transaction limit for smartphone apps like PhonePe, Paytm, and Google Pay remains unchanged, allowing UPI transactions of up to Rs 1 lakh daily. Notably, for medical emergencies and similar situations, this limit has been raised to Rs 5 lakh.
UPI Circle
The UPI Circle feature, launched this year, will expand to other UPI platforms beyond just BHIM in the upcoming year. Currently, users of the BHIM app can take advantage of UPI Circle, which allows them to add family members or friends for delegated payments. Secondary users added to a UPI Circle can make payments without needing a bank account. However, primary users must provide approval for each payment, or they can set a specific limit for secondary users to spend without needing further authorization.
Meanwhile, the Ministry of Finance has recently published the latest figures on the Unified Payments Interface (UPI), showing a remarkable 15,537 crore transactions from January to November this year. The total value of these transactions reached an impressive Rs 223 lakh crore.
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