After multiple delays, the National Payment Corporation of India (NPCI) has now finally officially unveiled UPI 2.0 at an event in Mumbai today.
As expected, UPI 2.0 brings a huge list of new features, such as overdraft account linking, invoice in the inbox (within a UPI-enabled payments app) and one-time mandate among others. It also sets the stage for the next-gen features such as standing instructions and more.
There are also a ton of other changes in tow, so let us jump in and take a look at what’s new with this update:
Overdraft Account Linking
UPI 2.0 finally gives you the ability to link your overdraft account to the payments system. This means you’ll soon be able to pay for stuff even when you don’t have enough money in your account, without exceeding a maximum negative balance limit.
The ability to use overdraft facility will make it easier for merchants who use current accounts to settle their balances. You can check out the video below to know more:
Transaction Limit Enhanced
NPCI has attended to the flood of requests from UPI users and now increased the total transaction limit to Rs 2 lakh from the previous Rs 1 lakh. Each transaction is still limited to Rs 10,000. The extended limit will only be available to select users, with more details awaited on the eligibility criteria.
Invoice in the Inbox
This is a feature designed for cautious users, who like to double-check every transaction and payment amount before paying up. Invoice in the Inbox is lets you “view the invoice of a bill within the UPI payment app” before moving forward to enter the UPI PIN and complete the transaction.
One Time Mandate
The one-time mandate feature has been designed to help users handle ‘on-delivery’ payments via UPI. When buying a new product online on cash on delivery, or using OLA, you can choose to pay later via UPI 2.0 and the payment will no longer be deducted instantly from your account.
The amount will be blocked in your bank account but the merchant will only be paid the same when you receive the item or, in the case of OLA, reach your destination. It’s a great new addition to tackled delivery failures, and stop endless calls with customer care.
Signed Intent & QR
Earlier last year, NPCI had also launched Bharat QR to make it simpler for users to scan and pay for goods but it didn’t get enough of an adoption. Thus, UPI 2.0 introduces signed QR codes that will confirm that a merchant is verified and you can securely complete the payment.
UPI 2.0 is a significant upgrade and focuses on improving person-to-merchant (P2M) transactions. It’s important to see these changes as not just new features but a way to improve platform security.
As of June 2018, NPCI has recorded 24.6 crore UPI transactions, with funds worth Rs 40,834 crore being transacted using the payments system. But with all these new features in tow, we can only expect the adoption and transaction numbers to rise in the coming months. What are your thoughts on UPI 2.0? Tell us in the comments below.