New UPI and ATM rules from today
What's the story
A host of changes have come into effect from June 1, impacting Unified Payments Interface (UPI) and other financial aspects. The new measures are aimed at enhancing security and curbing fraud in digital transactions. Key changes include additional verification for high-value UPI payments, visibility of the verified name of the recipient before confirming a transaction, and ATM-related modifications, among others.
Security upgrades
New security measures for high-value UPI transactions
From June 1, apps like Google Pay, PhonePe, and Paytm will implement stronger security measures for high-value UPI transactions. These won't just rely on 4 or 6-digit PINs anymore. Users may have to go through additional authentication methods such as biometric verification (fingerprint or face recognition). Some transactions might also require two-factor/device-based verification to minimize fraud risks.
Transaction accuracy
Pre-transaction name verification to reduce errors
To minimize wrong transfers, UPI apps will introduce pre-transaction name verification from June 1. Before completing a payment, users will see the verified official name of the recipient fetched from a secure database. This step is aimed at confirming details before sending money and reducing errors in digital transactions.
ATM changes
Change in cardless ATM withdrawals through UPI
Cardless ATM withdrawals through UPI will now be counted under a bank's monthly free withdrawal limit. If users exceed the allowed number of free transactions, charges will apply like regular debit card withdrawals.
Tax regulations
Other important deadlines on June 15
The deadline for the first advance tax installment for FY 2026-27 is June 15. Taxpayers with a liability of over ₹10,000 must pay 15% of their advance tax by this date. Failure to do so will attract a 1% monthly interest penalty. Under revised rules, PAN is not mandatory for regular cash deposits above ₹50,000 until the total cash deposits/withdrawals reach or exceed ₹10 lakh in a financial year.