UPI New Rules: Today, most people use UPI. From buying groceries to paying electricity bills, UPI is being utilised for virtually everything. Apps like Google Pay, PhonePe, and Paytm have become an integral part of people’s daily lives. Ever since demonetization, people have reduced their reliance on cash and have increasingly adopted UPI for their transactions. If you, too, are a frequent UPI user, there is significant news coming your way. Starting June 1st, a major change is being introduced to the UPI system.
Now, whenever you scan a QR code to make a payment, the actual name of the bank account holder receiving the funds will be displayed. Previously, in many instances, customers would only see the merchant’s business name or a name associated with the QR code, which often led to considerable confusion; however, this rule has now been changed.
Name to Appear Before Sending Money
There have been numerous instances where, in their haste, individuals have accidentally sent money to the wrong person. This occurred because the intended recipient’s name was not displayed during the transaction. However, starting June 1st, this issue is expected to be significantly mitigated. The Modi government has enhanced the UPI transaction process to make digital payments even more secure.
Now, the official name registered with the customer’s bank account will be displayed on the screen. This change in regulations will make it easier to verify transactions, allowing you to confirm in advance that you are transferring money to the correct person and account.
This rule will be applicable across all UPI platforms, including Google Pay, PhonePe, and Paytm.
Will This Impact Merchants?
This new rule could impact business owners and shopkeepers. In some cases, the name of a commercial establishment differs from the name registered on its associated bank account. Consequently, if a customer scans a QR code and sees an individual’s name displayed instead of the shop’s name, they may hesitate to proceed with the payment. Therefore, merchants will now need to ensure that their registered bank account details align with their business identity.
Why Are People Using UPI?
Some people use UPI to pay vegetable vendors or tea sellers. However, substantial sums of money are now being transferred through this platform as well. People are now making payments amounting to lakhs—even for purchasing jewellery—using UPI. Nowadays, some individuals have even started disbursing salaries via UPI. In the past, people either carried cash or primarily relied on debit and credit cards for most payments.
However, people can now transfer large sums of money in a matter of minutes. With UPI, payments are processed in the blink of an eye; even the largest amounts can be transferred instantly. It requires neither a card swipe nor a wait for an OTP. This is precisely why people are increasingly utilising UPI.
