By the end of 2024, India has further strengthened its position in the global digital payments revolution. Thanks to UPI (Unified Payments Interface), the country’s digital payments ecosystem has seen unprecedented growth. In 2023, India accounted for 40% of global online payments, and UPI had 300 million users and 50 million merchants on the platform. Last year alone, there were 117.6 billion UPI transactions, and the number is growing steadily.
But UPI has maintained its momentum in 2024 as well, bringing several important updates that are making digital payments even easier, faster, and inclusive. From increased transaction limits to new features, let’s know what’s new in UPI in 2024.
Increased transaction limits for feature phone users
The transaction limits on UPI for feature phone users have traditionally been low, but 2024 marks a major change in this regard. The limit, which was earlier Rs 5,000, has now been increased to Rs 10,000. This upgrade is part of the UPI123PAY service, which allows feature phone users to make UPI payments through missed calls and IVR (Interactive Voice Response). This change will boost digital payments in rural and semi-urban areas where feature phones are still widely used.
UPI Lite revamped
UPI Lite is another important update that allows small and low-value transactions to be done without PIN authentication. Earlier, the limit for UPI Lite was Rs 2,000, but now it has been increased to Rs 5,000. This change will make it easier for users to quickly pay for everyday items—such as groceries, transportation, or snacks—without having to enter the PIN every time.
This improved version of UPI Lite is designed to complete small transactions without any interruption, thereby further promoting cashless payments.
Auto Top-up Feature
To make UPI payments even more convenient, the Auto Top-up feature was introduced in 2024. This new feature ensures that users’ wallets will be automatically topped up from the linked bank account when the balance is low. There is no authentication required from the user in this process, so there is no failure due to wallet balance during payment. This update makes the payment experience even simpler and seamless.
Increased transaction limit for select payments
In 2024, NPCI (National Payments Corporation of India) took the important step of increasing the UPI transaction limit for certain specific payment categories. The limit was increased from Rs 1 lakh to Rs 5 lakh for hospitals, tuition fees, IPOs, insurance and other high-value transactions. This change makes UPI a better option for high-value transactions, which may increase the use of UPI instead of traditional banking methods.
This limit increase makes UPI even more suitable for a variety of financial services and transactions.
UPI Circle: A new way for families and groups
A new and special feature has been introduced in 2024—UPI Circle. This feature allows users to create a trusted group, which can include family members or friends, who can make payments using the main user’s UPI-linked account.
How UPI Circle works:
- The main user (account holder) can invite secondary users (family members or friends) to add them to their UPI Circle.
- Secondary users can make payments from the main user’s linked bank account up to a pre-defined limit.
- Each transaction requires the primary user’s prior approval, ensuring security and control.
- This feature provides a flexibility for families or groups to share payment responsibilities, while retaining full control over the accounts.
Improving User Experience
The main aim of all these changes in UPI is to improve the user experience. From increased transaction limits to new features like UPI Circle and Auto Top-up, these updates make digital payments more inclusive, seamless, and user-friendly. Be it small payments, large transactions, or managing payments within families, UPI is evolving to meet the need of every user.
| Feature | Details | Impact |
|---|
| Increased Limits for Feature Phone Users | UPI transaction limit for feature phone users increased from Rs 5,000 to Rs 10,000 through UPI123PAY. | Allows feature phone users in rural and semi-urban areas to make larger payments via missed calls and IVR. |
| Enhanced UPI Lite | UPI Lite limit increased from Rs 2,000 to Rs 5,000 for quick transactions without PIN authentication. | Simplifies small, low-value payments like groceries, transport, and snacks without needing PIN entry. |
| Auto Top-Up Feature | Automatic wallet top-up when balance falls below a certain threshold, with no authentication required. | Ensures smooth and uninterrupted transactions, reducing the chances of failed payments due to low wallet balance. |
| Increased Transaction Limits for Selected Payments | Transaction limit increased from Rs 1 lakh to Rs 5 lakh for hospital, tuition, IPO, and insurance payments. | Enables higher-value payments for essential services without needing traditional banking methods. |
| UPI Circle | Primary user can invite secondary users (family/friends) to make payments from their linked UPI account. | Provides control and flexibility for families or groups to manage shared payments while retaining approval rights over transactions. |
| Overall User Experience Improvements | Enhanced features designed to make UPI more accessible, seamless, and user-friendly. | UPI continues to evolve, improving convenience for all users, whether they’re making small transactions or handling larger ones. |
