UPI Payment: In view of unusual transactions and increasing cyber fraud, Indian banks and the Reserve Bank (RBI) have further tightened the security rules related to UPI. Besides, the limits have also been tightened. If the Bank’s Automatic Risk System detects any suspicious activity in your account, your UPI limit will be immediately reduced or payment will be blocked.

It has been confirmed by the banks that the sudden drop in UPI limit is usually due to their automated fraud detection systems. Immediate restrictions may be imposed for reasons such as entering incorrect PIN multiple times, repeated transaction failures or unusual spending patterns. These steps are precautionary measures aimed at protecting customer accounts until the safety of their activities can be confirmed.

In which cases can strictness be shown?

Suddenly big transaction- You usually do transactions between Rs 100-500, but one day suddenly you try to transfer Rs 50,000, then the bank’s automatic risk system gets alerted.

Sudden change in location- Trying to transact from two different places or a distant city on the same day.

Repeatedly failed attempts- In case of repeated incorrect PIN entry or transaction failure, the system blocks the limit for security. However, there is nothing to panic about. This is a temporary warning, which gets resolved automatically within 24 hours or it can be reset by talking to the bank.

New strict rules of RBI

To curb digital fraud, the Reserve Bank has implemented a new rule of two-factor authentication. Under this, now online or UPI payment will not be completed just by filling an OTP. For this, along with password/PIN, biometric (fingerprint or face scanner) verification will also be required.

For secured transactions, National Payments Corporation of India (NPCI) has fixed the daily payment limit at Rs 1 lakh per day and maximum 20 transactions. For some verified users, this limit has been increased from Rs 5 lakh to Rs 10 lakh. For UPI Lite, this limit is maximum Rs 1000 per transaction and daily limit is Rs 10000.

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