New UPI Rules Come Into Effect From Today: Biometric Security Introduced, No GST On Transactions
Key Points
The National Payments Corporation of India (NPCI) has rolled out new guidelines that affect how users interact with UPI apps like PhonePe, Google Pay, Paytm, and BHIM.
Bhubaneswar, Aug 1: Starting today, the Unified Payments Interface (UPI) system in India undergoes a major transformation aimed at enhancing security and streamlining digital transactions.
The National Payments Corporation of India (NPCI) has rolled out new guidelines that affect how users interact with UPI apps like PhonePe, Google Pay, Paytm, and BHIM.
Biometric Authentication for UPI Payments
To make UPI transactions more secure, biometric verification is being introduced. Users will now be able to authenticate payments using fingerprint or facial recognition, depending on device compatibility and app support. This move is expected to reduce fraud and unauthorized access to UPI accounts.
No GST on UPI Transactions
In a relief to users, NPCI has clarified that UPI transactions will not attract any GST charges. This ensures that digital payments remain cost-effective and accessible to all, especially for small-value transactions.
Key Changes in UPI Usage
Biometric Authentication: NPCI is testing biometric payment options—fingerprint, face ID, and iris scan—as alternatives to PINs. This Aadhaar-linked feature will improve accessibility for elderly and rural users.
Balance Check Limit: Users can check their bank balance only 50 times per day per UPI app. After this, further requests will be blocked for 24 hours.
Linked Account View Cap: You can view bank accounts linked to your mobile number only 25 times per day per app.
Fixed AutoPay Windows: Recurring payments (EMIs, subscriptions, SIPs) will be processed only during non-peak hours: Before 10:00 am, between 1:00 pm and 5:00 pm, and after 9:30 pm.
Transaction Status Checks: Status of pending transactions can be checked only 3 times, with a mandatory 90-second gap between each attempt.
Payee Name Visibility: UPI apps must display the registered name of the recipient before any money transfer to prevent fraud.
No GST on UPI Transactions: The government has confirmed that no GST will be levied on UPI transactions, even those above Rs 2,000.
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