Starting January 1, 2025, a slew of regulatory and financial changes will be coming into effect, affecting citizens across the country. From changes in the Employees’ Provident Fund Organisation (EPFO) procedures to adjustments in LPG pricing and the Unified Payments Interface (UPI), the new year could have a significant impact on your wallet. Here’s a complete list of the changes that you can expect.

EPFO new rule

EPFO is set to streamline the pension withdrawal process from January 1, 2025 as part of the centralised pension payment system (CPPS). Pensioners will now have the convenience of withdrawing their pensions from any bank in the country, eliminating the hassle of additional verification.

Reports suggest that EPFO will be soon issuing an ATM card that will enable subscribers to withdraw money around the clock. Moreover, the EPF contribution cap is expected to be eliminated this year as well.

GST

Multi-factor authentication (MFA) will be made mandatory for taxpayers for better security on the GST portal. Additionally, E-Way Bills (EWBs) can only be generated for base documents not older than 180 days.

UPI and farmer loans

As per a recent circular by the Reserve Bank of India (RBI), starting today, UPI 123Pay, using which feature phone users make online payments, will see an increase in its transaction limit from January 1, 2025. The new limit will be Rs 10,000, up from the previous Rs 5,000.

Additionally, the central bank has raised the cap on unsecured loans for farmers to Rs 2 lakh from Rs 1.60 lakh. This increase, effective today, is intended to provide more financial support to farmers, potentially aiding in better agricultural practices and investments.

Visa requirements

US Visa Appointment Reschedule:

Starting January 1, 2025, non-immigrant visa applicants in India will benefit from a policy allowing one free rescheduling of their visa appointment. However, any further rescheduling will necessitate a new application and payment of the visa fee, aiming to streamline the process while maintaining discipline in appointment scheduling.

Changes in the H-1B Visa Process:

New rules, effective from January 17, 2025, will modernise the H-1B visa process, making it more flexible for employers and accessible for Indian F-1 visa holders.

LPG pricing

Though no official announcement has been made so far, the trend has remained of price change of both domestic (14 kg) and commercial LPG cylinders (19 kg) in the new year. While domestic cylinders’ prices have remained consistent, commercial cylinders have witnessed some volatility. As per experts, there could be a price hike in both.

New Delhi:

The Unified Payments Interface (UPI)-based digital transactions continued to surge and in the month of October, the country saw 16.58 billion transactions worth Rs 23.5 lakh crore, the highest numbers since the UPI became operational in April 2016.

According to data shared by the National Payments Corporation of India (NPCI) on Friday, October saw a 10 per cent increase in volume and 14 per cent in value compared to September.

Daily UPI transactions in October crossed 535 million in volume and Rs 75,801 crore in value – compared to 501 million in volume and Rs 68,800 crore in September.

There were 467 million Immediate Payment Service (IMPS) transactions in October, up 9 per cent from 430 million in September. In value terms, IMPS transactions grew by 11 per cent to Rs 6.29 lakh crore compared to Rs 5.65 lakh crore in September.

Meanwhile, the number of FASTag transactions increased 8 per cent in October to 345 million, compared to 318 million in September. Transactions worth Rs 6,115 crore were made in October, up from Rs 5,620 crore in September.

There were 126 million transactions on the Aadhaar Enabled Payment System (AePS) in October, up 26 per cent from 100 million in September, as per the NPCI data.

According to the latest paper by economist Pradip Bhuyan from the Reserve Bank’s Department of Currency Management, digital transactions have surged in such a fashion in India that cash usage, which still accounts for 60 per cent of consumer expenditure (as of March 2024) is rapidly declining.

The share of digital payments more than doubled from 14-19 per cent in March 2021 to 40-48 per cent in March 2024, with unified payments interface (UPI) playing a key role.

UPI-based transaction volume surged 52 per cent to 78.97 billion in the first half of this year (H1 2024), from 51.9 billion in the same period last year.

Similarly, the value of transactions grew by 40 per cent, increasing from Rs 83.16 lakh crore to Rs 116.63 lakh crore in the first six months of this year.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Surpassing world’s leading digital payments platforms, India’s Unified Payments Interface (UPI) processed nearly Rs 81 lakh crore transactions in the April-July period this year, which is a staggering 37 per cent increase (year-on-year).

According to latest data by global payments hub Paysecure, UPI processed 3,729.1 transactions per second — a 58 per cent surge over the 2,348 transactions every second registered in 2022— surpassing China’s Alipay, Paypal and Brazil’s PIX in the number of transactions, the data showed.

In July, UPI transactions crossed Rs 20.6 lakh crore — the highest-ever during a month. The value of UPI transactions processed remained above Rs 20 lakh crore for three consecutive months.

Paysecure examined 40 of the top alternative payment methods from around the world to reveal this data.

The findings showed that India leads the world in digital transactions, with over 40 per cent of payments being made digitally, and UPI being used for a majority of them.

According to Dilip Asbe, CEO of National Payments Corporation of India (NPCI), UPI has the potential to touch 100 billion transactions in the next 10-15 years backed by credit growth. Credit has already been launched on UPI and the commercials would be released within in a couple of weeks.

Official figures show that as many as 13.89 billion transactions were recorded on UPI in June up from 14.04 billion in May. According to consultancy firm PwC India report, the number of transactions on UPI is expected to jump more than 3-fold from about 131 billion in 2023-24 to 439 billion by 2028-29, accounting for 91 per cent of total retail digital transactions.

According to RBI Governor Shaktikanta Das, based on the encouraging response received from several jurisdictions, the apex bank is now focusing on making “UPI and RuPay truly global”.

At the ‘Global Fintech Fest’ in Mumbai this week, he said that the deployment of UPI-like infrastructure in foreign jurisdictions, facilitating QR code-based payment acceptance through UPI apps at international merchant locations, and interlinking UPI with Fast Payment Systems (FPS) of other countries for cross-border remittances are on top of their agenda,

UPI is India’s mobile based, ‘fast payment’ system that facilitates customers to make round the clock payments instantly using a Virtual Payment Address (VPA) created by the customer.
| Photo Credit: Photo Credit: X/@UPI_NPCI

“India and South East Asian nation Cambodia are negotiating collaboration in Unified Payment Interface-based (UPI) digital payment to promote trade and tourism,” the Commerce Ministry said on June 20.

Both sides also deliberated upon diversification of the trade basket by identifying new products, bilateral investment treaty, recognition of Indian pharmacopoeia and collaboration in the pharma sector.

These issues among others were discussed during the second meeting of the India-Cambodia Joint Working Group on Trade and Investment (JWGTI), in New Delhi on June 19.

Pharmacopoeia is a set of standards and quality specifications for ingredients, preparation and dosage forms of medicines manufactured, sold, consumed and exported in a country.

Indian Pharmacopoeia Commission (IPC) is an autonomous institution under the Ministry of Health and Family Welfare which sets standards for all drugs that are manufactured, sold and consumed in India.

“The meeting discussed the progress of the ongoing efforts for collaboration in UPI-based digital payment to promote trade and tourism,” it said in a statement. India has already collaborated with countries like the UAE on UPI.

The meeting was co-chaired by Joint Secretary in the Department of Commerce Siddharth Mahajan and Director General for International Trade in the Cambodian Ministry of Commerce Long Kemvichet.

Mr. Mahajan mentioned the measures for deepening bilateral trade and investment and also emphasised on creation of mechanisms for cooperation and collaboration in sectors of mutual interest. The Cambodian side elaborated on the numerous investment opportunities that Cambodia presents for Indian businesses.

The JWGTI was first held in July 2022 virtually. This was the first physical meeting after it was institutionalised. Cambodia is a member of the 10-nation Asian bloc. Asean (Association of southEast Asian Nations) members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. India has a free trade agreement with Asian and it was implemented in 2009.

The bilateral trade between India and Cambodia has increased to $403.78 million (exports $185.39 million and imports $218.4 million) in 2023-24 from $366.44 million in 2022-23.

The principal commodities exported from India are pharmaceutical products, bovine meat, motor vehicles (autos, motorcycles and spare parts), raw hides and leather, and chemicals. The main imports include chemicals, vegetable oil, articles of apparel and clothing, and footwear.

New Delhi:

India will again delay caps on market share for a popular digital payments method, two sources told Reuters, benefiting Google Pay and Walmart-backed PhonePe as the authorities prioritise growth over concerns about market concentration.

The National Payments Corporation of India (NPCI), the quasi-regulator, will extend by as much as two years a year-end deadline to cap at 30% the market share of any company processing payments via the Unified Payment Interface (UPI), the sources with direct knowledge of the matter told Reuters.

PhonePe’s share of UPI payments has risen to 48.3% from 37% in April 2020, while Google Pay’s share has declined to 37.4% from 44%, according to NPCI data. The two processed a combined 11.5 billion transactions in April, the data showed.

NPCI and Google Pay declined to comment. PhonePe did not respond to an email seeking comment.

India launched UPI in 2016 but barred companies from charging for the instant digital payments service in an effort to promote online transactions and reduce the use of cash in Asia’s third-largest economy.

Because they cannot charge for it, India’s banks and others like Meta-owned WhatsApp and Amazon Pay have not pushed UPI-based payments aggressively, leaving authorities worried about a concentration risk.

While their apps do not earn money from the payments, PhonePe and Google Pay have been able to use their UPI customer base to sell services such as loans and insurance.

NPCI, which has a regulatory mandate from the central bank, announced the 30% cap in 2020 but later extended the deadline by two years to the end of 2024.

The deadline will have to be extended again, said one of the sources, as it is not possible for PhonePe and Google Pay to reduce their market shares without hurting UPI payments growth.

A final decision on the extension will be communicated closer to the deadline, said the sources, who asked not to be identified because they are not allowed to speak to the media.

NPCI had hoped for more competition when WhatsApp was permitted to offer UPI-based payments in February 2020, but the company had just 0.2% market share as of April.

India’s Paytm, with the third-highest share, has experienced a decline in payments processed through its platforms after regulators placed curbs on a group entity.

Payment firms want the market-share cap removed, asking NPCI to let them charge for UPI payments to encourage competition, said an official at a payment company.

The government will decide whether to allow firms to charge for UPI payments, the two sources said, but one said NPCI does not favour removing the share cap.

The volume of UPI transactions rose 49.5% in April from a year earlier, less than the 54% rise logged March.

The central bank met on Tuesday with industry executives to brainstorm on ways to expand the UPI user base, which was about 300 million users and 50 million merchants late last year, according to the most recent data.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

India and Ghana have agreed to operationalise Unified Payment Interface (UPI) with Ghana Interbank Payment and Settlement Systems within six months in order to enable instant fund transfers for users in both countries, the Commerce Ministry said on Monday,

The discussions were part of a Joint Trade Committee (JTC) meeting between Indian and Ghanaian officials in Accra from May 2-3.

Both countries also discussed the possibilities of a Memorandum of Understanding (MoU) on Local Currency Settlement System (LCCS) in trade, digital transformation solutions, and on the opportunities offered by the African Continental Free Trade Agreement, the Commerce Ministry said.

The linking of Indian and Ghanaian instant payment systems will be the latest in India’s expansion of UPI operations, which are already available in countries such as France, UAE, Sri Lanka and Mauritius.

The move to settle bilateral trade payments between the two countries in local currencies will reduce dependence on the US dollar and help to strengthen the rupee.

A seven-member delegation from India led by Additional Secretary, Department of Commerce, Ministry of Commerce and Industry, India, Amardeep Singh Bhatia.

In a comprehensive dialogue, both sides undertook a detailed review of recent developments in bilateral trade and investment ties and acknowledged the vast untapped potential for further expansion.

Both sides identified several areas of focus for enhancing both bilateral trade as well as mutually beneficial investments. These include cooperation in pharmaceuticals, healthcare, information and communication technology, agriculture and food processing, renewable energy, power sector, digital economy and digital infrastructure, critical minerals, textiles and garments, etc.

An official delegation from India consisted of officials from the Geological Survey of India, EXIM Bank and the Indian Pharmacopoeia Commission. The officials of both India and Ghana actively engaged in the proceedings of the JTC.

A business delegation led by the Confederation of Indian Industry (CII) also accompanied the official delegation with representatives from the varied sectors including power, fintech, Telecommunications, electrical machinery, and pharmaceuticals sectors.

The delegation including representatives of business also met the Secretary-General, AfCFTA and his team of officials wherein areas of cooperation included the signing of an MoU, setting of standards, investments, participation in trade events in India, and increasing the depth of engagement between India and AfCFTA was discussed. Names of nodal officers to take the discussions forward were also exchanged.

Ghana is an important trading partner of India in the African region. Bilateral trade between India and Ghana stood at USD 2.87 billion in 2022-23. India stands as a leading investor in Ghana and emerged as the third-largest investor. These investments traverse diverse sectors, encompassing pharmaceuticals, construction, manufacturing, trade services, agriculture and tourism.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Image for representation only
| Photo Credit: C. Venkatachalapathy

The Reserve Bank of India has proposed to facilitate cash deposit facility in banks through the use of UPI, an instant real-time payment system for inter-bank transactions through mobile phones.

ALSO READ | RBI Monetary Policy LIVE updates 

“Given the popularity and acceptance of UPI, as also the benefits seen from the availability of UPI for cardless cash withdrawal at ATMs, it is now proposed to facilitate cash deposit facility through use of UPI,” RBI Governor Shaktikanta Das said in the Monetary Policy Statement, released on April 5, 2024.

The Cash Deposit Machines (CDMs) deployed by banks enhance customer convenience while reducing cash-handling load on bank branches. The facility of cash deposit is presently available only through use of debit cards.

Operational instructions regarding cash deposits using UPI will be issued shortly, according to the central bank.

RBI to permit linking PPIs with UPI apps

The RBI has also proposed to permit linking of Prepaid Payment Instruments (PPIs) through third-party UPI applications to provide more flexibility to users.

At present, UPI payments from bank accounts can be made by linking a bank account through the UPI app of the bank or using any third-party UPI application. However, the same facility is not available for PPIs.

PPIs can currently be used to make UPI transactions only by using the application provided by the PPI issuer.

“To provide more flexibility to PPI holders, it is now proposed to permit linking of PPIs through third-party UPI applications. This will enable the PPI holders to make UPI payments like bank account holders,” the RBI said.

Instructions in this regard too will be issued shortly.

Reserve Bank of India Governor Shaktikanta Das. File
| Photo Credit: PTI

Digital Rupee users will soon be able to execute transactions in areas with limited internet connectivity as the Reserve Bank of India (RBI) on February 8 announced that offline capability will be introduced on the Central bank digital currency (CBDC) pilot project.

RBI Governor Shaktikanta Das said that programmability-based additional use cases will be introduced as part of the pilot project. RBI launched a pilot of the retail CBDC in December 2022 and achieved the target of having 10 lakh transactions a day in December 2023.

It can be noted that other payment platforms, especially the very popular Unified Payments Interface (UPI), already offer offline possibilities.

“It is proposed to introduce an offline functionality in CBDC-R (Retail) for enabling transactions in areas with poor or limited internet connectivity,” Mr. Das said while announcing the bimonthly monetary policy review.

He said multiple offline solutions, which include both proximity and non-proximity based ones, will be tested across hilly areas, rural and urban locations for the purpose.

On the programmability front, he said that currently, the system enables Person to Person (P2P) and Person to Merchant (P2M) transactions using digital rupee wallets provided by pilot banks.

“It is now proposed to enable additional use cases using programmability and offline functionality,” he said.

“The programmability feature will permit users such as government agencies to ensure that payments are made for defined benefits,” he said, adding that corporates will also be able to programme specified expenditures like business travel for their employees.

“Additional features such as validity period or geographical areas within which CDBC may be used can also be programmed,” he said.

Meanwhile, Mr. Das also announced RBI’s intent to enhance the security features of Aadhaar enabled Payment Systems (AePS), which was used by 37 crore people in 2023.

“To enhance the security of AePS transactions, it is proposed to streamline the onboarding process, including mandatory due diligence, for AePS touch point operators, to be followed by banks,” Mr. Das said, adding that instructions on the same will be issued shortly.

At present, Mr. Das said lenders are using the SMS method for complying with the additional factor authentication requirements but advancements in technology have opened up newer means.

“To facilitate the use of such mechanisms for digital security, it is proposed to adopt a principle-based “Framework for authentication of digital payment transactions”,” he said.

National Payments Corporation of India’s (NPCI) Unified Payment Interface (UPI) being formally launched at the Eiffel Tower on February 2, 2024
| Photo Credit: PTI

India on Friday formally launched UPI at the iconic Eiffel Tower here, terming it as taking Prime Minister Narendra Modi’s vision of taking UPI global.

“UPI formally launched at the iconic Eiffel Tower at the huge Republic Day Reception. Implementing PM @narendramodi’s announcement and the vision of taking UPI global,” the official X handle of India’s Embassy in France posted along with the photos of the event.

Replying to this, Mr. Modi said, “Great to see this – it marks a significant step towards taking UPI global. This is a wonderful example of encouraging digital payments and fostering stronger ties.”

Unified Payments Interface (UPI), launched in 2016, is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing and merchant payments into one hood, according to NPCI.

Incidentally, at the invitation of Prime Minister Modi, Emmanuel Macron, President of France, was the Chief Guest for the 75th Republic Day celebrations in New Delhi on January 26.

“The new energy in India-France ties from a historic year in the Strategic Partnership visible at 75th Republic Day reception,” the official handle X posted and thanked the Minister Delegate in charge of Democratic Renewal, Government Spokesperson Prisca Thevenot for honouring the occasion.

It also thanked the members of Parliament, business leaders, scholars, friends of India and Indians in France.

The NPCI said in a statement that its arm NPCI International Payments (NIPL) has tied up with French e-commerce and proximity payments Lyra, which will help ensure that the UPI payment mechanism is accepted in the European country, starting with the Eiffel Tower.

At present, Indian tourists rank as the second largest group of international visitors to the Eiffel Tower, it said. Indian tourists can simply scan a QR code generated on the merchant’s website and initiate a payment.

Eiffel Tower is the first merchant to offer UPI payments in France, and the service will soon be extended to other merchants in the tourism and retail space across France and Europe.