Don’t Miss Out: Essential 2024 UPI Payment Updates- Every MSME and Social Seller Must Know
As we step into 2024, it’s crucial for micro, small and medium enterprises (MSMEs), and social sellers to stay updated with the latest financial tools and regulations. The Reserve Bank of India (RBI) has rolled out new rules and regulations around the United Payments Interface (UPI), which came into effect on January 1, 2024. These changes are not just updates; they are game-changers for your business. Read on to know how you can leverage these for your growth! 1. Higher Transaction Limits for Key Sectors.
Great news for businesses in healthcare and education! The RBI has now increased the UPI transaction limit for payments made to hospitals and educational institutions. The cap has been raised from Rs 1 lakh to a whopping Rs 5 lakh. This significant increase can facilitate larger transactions, aiding in smoother operations for your business in these sectors.2. Inactive UPI IDs? It’s Cleanup Time!
The National Payments Corporation of India (NPCI) is tightening its belt on security. It’s instructing banks and payment apps to deactivate UPI IDs that have been inactive for over a year. This move is crucial for your business’s security, ensuring that transactions are always intentional and to the correct recipient.3. UPI Lite Wallets: Higher Limits for Smaller Transactions
Here’s a boon for businesses dealing with frequent, small-scale transactions. The UPI Lite wallet transaction limit has been increased from Rs 200 to Rs 500. This is ideal for MSMEs and social sellers who handle numerous low-value transactions, making the process quicker and more efficient.4. Simplified Auto Payments
For businesses dealing with regular payments like credit card bills, mutual fund subscriptions, or insurance premiums, the process just got easier. UPI auto payments up to Rs 1 lakh no longer require additional factor authentication (AFA). This streamlines the payment process, saving you time and hassle.5. Interchange Fee on Merchant Payments: What You Need to Know**
The NPCI has introduced a 1.1 per cent interchange fee on UPI payments made by merchants for transactions less than Rs 2,000. This is a critical update for budget planning in your business transactions.
These updates to the UPI system mark a significant shift towards more efficient, secure, and user-friendly digital transactions. As an MSME or a social seller, adapting to these changes is not just about compliance; it’s about harnessing the power of digital finance for your business growth and security. Stay ahead of the curve – embrace these changes and watch your business thrive in 2024!