As per an Economic Times report, in October 2023, the number of Unified Payments Interface (UPI) transactions in India were in excess of 11 Billion. The total transaction volume reached a whopping ₹ 17.16 Lakh Crores. This just goes on to show how Indians have embraced UPI as the digital payment mode of choice.
In a significant stride towards enhancing digital payments, the National Payments Corporation of India (NPCI) had introduced the next evolution in UPI. The original UPI 2.0 launch date was August 16, 2018, and it continues to be enhanced regularly. Here are the top UPI 2.0 features and benefits that come along with it.
Apart from the aforementioned, NCPI is constantly monitoring, evaluating, and enhancing the UPI framework. As a result, it has launched and announced some new features as well.
As UPI 2.0 unfolds, it brings not just new features but a promise of heightened efficiency, security, and accessibility in digital transactions. The collaborative efforts of NPCI, banks, and key industry players aim to further integrate digital payments into the fabric of India's financial landscape. To enjoy all the benefits of UPI 2.0, you need to have a bank account with one of the NPCI partner banks, like Federal Bank.
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UPI 2.0 introduces groundbreaking features like overdraft facilities, one-time mandates, invoice verification, and signed intent & QR. These enhancements revolutionise digital transactions, offering users and businesses greater flexibility, security, and convenience.
UPI 2.0 prioritises security by implementing signed intent & QR, ensuring users can verify the authenticity of merchants seamlessly. Additionally, features like one-time mandates enhance privacy, allowing users to pre-authorise transactions securely.
UPI 2.0 presents significant advantages for businesses and merchants. Invoice in the inbox feature allows customers to verify invoices, instilling trust. Moreover, the signed intent & QR feature adds an extra layer of security, fostering a secure environment for transactions.
While UPI 2.0 maintains the existing daily UPI limits (₹1 Lakh transaction daily), the introduction of features like overdraft facilities and one-time mandates enhances transaction capabilities. Furthermore, it has been proposed to up the daily limit in the near future. The signed intent & QR feature streamlines transactions, eliminating the need for an app passcode.
To leverage UPI 2.0, consumers and businesses need to ensure their banks are part of the UPI 2.0 member banks. Once confirmed, users can seamlessly integrate the new features into their existing UPI applications, providing an upgraded and efficient digital payment experience.