UPI Rules: Big news for UPI users. This news is crucial if you also use UPI apps like PhonePe,Google Pay,or Paytm to make payments everywhere from tea shops to shopping centers. With effect from April 1,2026,the Reserve Bank of India (RBI) has significantly altered the rules governing digital payments. Your everyday transactions will be directly impacted by this new change. Even though payments might take a few seconds longer to process,your money will be safer than before.
What is the new payment policy?
Previously,payments were made instantly by scanning the QR code that was displayed at stores and entering your 4- or 6-digit UPI PIN. However,by requiring two-factor authentication (DFA),the RBI has now strengthened security. This implies that you will now need to get past an additional security barrier in addition to entering your PIN to finish your payment. Your fingerprint,Face ID,or an OTP you received on your phone can be used for this second step. No money will if these two factors don’t match.
It’s a relief that there haven’t been any major changes to the remittance limit. For routine daily transactions,you can still send up to Rs 1 lakh. However,for essential purposes like hospital bills,school or college fees,or insurance payments,the limit remains at Rs 5 lakh. If you’re using UPI for the first time,for security reasons,you’ll only be able to transact up to Rs 5,000 in the first 24 hours.
New rules for ATM cardless money withdrawals
Nowadays,many people withdraw cash by scanning the UPI QR code displayed on the screen instead of inserting their debit card into an ATM machine. A new rule has been implemented regarding this feature. Many banks,such as HDFC,have now started adding this feature to your debit card’s ‘free limit’.
To understand in simple language,if you have got the facility to withdraw money for free 5 times in a month and you have crossed that limit,then even after that,if you withdraw cash by scanning UPI,you will have to pay the same charge which is levied on withdrawing money through ATM card.