Two New UPI Changes From November 2024-- All You Want To Know

From UPI Lite to Sebi mandate --check two changes in UPI.

New Delhi: The Unified Payments Interface (UPI) transactions have grown at a stellar pace of 75 per cent Compound Annual Growth Rate (CAGR), while UPI spends surged at 68 per cent CAGR in the August 2019-August 2024 period, a report by Axis Securities showed recently.

UPI users must note 2 changes that will kick in from November 1.

Auto Top-Up Feature On UPI Lite 

National Payments Corporation of India (NPCI) has issued a circular on auto top-up feature on UPI lite, that will allow the balance to be automatically reloaded whenever it falls below a minimum limit set by the user. The Auto Top-Up Feature On UPI Lite is likely to be rolled out from November 1.

UPI LITE enhances the user experience by allowing PIN less transactions under Rs 500 with a maximum UPI LITE balance limit of Rs 2000 at any point of time.

NCPI has said that with this new feature, the UPI LITE balance will automatically be reloaded by an amount chosen by the user, not exceeding the UPI LITE Balance limit, whenever the balance falls below a maximum limit set by them.

This increases the convenience and adaptability of UPI LITE by automating the process of reloading funds. Additionally users shall be provided with the option of revoking the auto top-up mandate at any point of time by the PSP/App.

Since the balance resides with the users' bank and the UPI LITE can be deleted anytime with instant refund of UPI LITE balance to users' main bank account, the requirement of pre-debit notification which is a usual mechanism for merchant mandate payments, has been dispensed with.

Sebi Mandates UPI For Public Issue Applications Of Debt Securities

To streamline the application process for public issues of debt securities, markets regulator Sebi has asked individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds. Further, investors will continue to have the choice of availing other methods like applying through Self-Certified Syndicate Banks or the stock exchange platform for making applications, Sebi said in its circular. These provisions will apply to public issues of debt securities starting from November 1.

"It has been decided that all individual investors applying in public issues of such securities through intermediaries (viz. Syndicate members, registered stock brokers, registrar to an issue and transfer agent and depository participants), where the application amount is up to Rs 5 lakh, shall only use UPI for the purpose of blocking of funds," Sebi said.

Also, they are required to provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries, it added.