UPI new developments: In a major development in the highly popular UPI technology, the National Payments Corporation of India has made announcements regarding UPI settlement cycles. From November 3, the NPCI has made up its mind to segregate authorized and dispute settlements. The step is to enhance operational efficiency of the payment system. Here are all the details you need to know regarding the latest development on UPI cycles.
What are the new UPI new updates?
Currently, UPI operates 10 daily settlement cycles through RTGS, including both authorised and disputed transactions. Under the new rules, the cycles 1–10 will only settle authorised transactions, which will be faster. The authorised and dispute settlements have been separated by NPCL because of the stupendous growth in UPI volumes. Due to the shift, payment partners and banks will be in a position to settle in time every day, thereby enhancing payment system operational efficiency.
NPCI increases daily UPI payment cap on P2M transactions to Rs 10 lakh
In another major change, the National Payments Corporation of India (NPCI) also increased the Unified Payments Interface (UPI) limits for person-to-merchant (P2M) payments up to Rs 10 lakh within 24 hours for designated categories from September 15. The initiative aims to allow bigger payments in priority sectors and spur digital adoption at high-value segments. The NPCI kept the person-to-person (P2P) cap at Rs 1 lakh per day, according to a report by IANS news agency.
For old users, there were usually restrictions earlier, and they were compelled to divide payments or use traditional means like cheques or bank transfers. Under the new format, capital market and insurance payments, the daily limit has been raised from Rs 2 lakh to Rs 5 lakh per transaction, and Rs 10 lakh per day.
