9 New UPI Features You Need to Know in 2025

Since its launch, the volume of UPI transactions has grown significantly, reflecting its widespread acceptance and trust among users.

According to data released by the National Payments Corporation of India (NPCI), UPI transactions reached a record 16,730.01 million in December 2024, marking a 39% increase compared to the 12,020.23 million transactions recorded in December 2023, while in value terms crossed over Rs 23.24 trillion as of December 2024, recording 128% jump compared to December 2023.

Over the years, UPI has continued to evolve, with the NPCI and the Reserve Bank of India (RBI) introducing new features that address the ever-changing needs of its users.

As FinTech continues to make strides, users expect and demand more features beyond basic transactions.

For instance, with globalisation and an increasing number of Indians engaging in international trade and travel, users require options to make cross-border payments effortlessly without relying on traditional methods involving high fees and lengthy processing times.

While UPI is currently operational in select countries that have partnerships with Indian payment systems, such as Singapore and Bhutan, more countries have been added to this list, and further expansion is expected in the near future.

In the past few months, several significant changes and updates have been made to expand UPI's capabilities. These features not only address specific user demands but also help the Indian digital payment ecosystem keep pace with broader economic and technological trends.

In this article, we'll learn about 9 UPI features you should know as you carry out online transactions in India and abroad.

1. UPI Services Now Accessible to All Indian Users Through WhatsApp Pay

In December 2024, the NPCI lifted the UPI user onboarding limit for WhatsApp Pay.

This is a significant development that allows the platform to offer UPI services to its entire Indian user base, which stands at approximately 535.8 million people.

Previously, NPCI allowed WhatsApp Pay to grow its UPI user base gradually through a phased approach.

In 2020, a user cap of one million was imposed to ensure a controlled and smooth rollout, minimising potential strain on the banking and payment infrastructure. This limit was gradually increased, reaching 100 million users by 2022.

Now, with the UPI ecosystem stabilised and more robust than ever, NPCI has removed the cap entirely, paving the way for WhatsApp Pay to expand its Indian user base without restrictions.

This development stands to make financial transactions simpler for more Indians, making it easier for users to send money to contacts, pay for goods and services, and manage everyday expenses directly within their chats.

For small businesses and entrepreneurs who rely on WhatsApp for customer interactions, the expansion could streamline payment collections and enhance their business operations.

Moreover, the addition of more users within the UPI ecosystem through WhatsApp Pay could be beneficial for financial inclusion, particularly among those who have been hesitant to adopt standalone banking or payment apps.

The convenience of initiating payments within an app that users are already comfortable with could encourage wider adoption of digital payments across different demographics and geographic regions.

2. More Countries to Now Accept UPI Payments

UPI is seeing growing international acceptance, with 2024 achieving a significant milestone as the Eiffel Tower in Paris became the first merchant in France to accept UPI payments.

In addition to France, Nepal and Qatar also introduced UPI payments in 2024. Other countries accepting UPI payments at present include Bhutan, Mauritius, Singapore, Sri Lanka, and the UAE.

Travellers visiting these countries can now make reservations and payments effortlessly without worrying about carrying adequate local currency or dealing with delays and high costs associated with currency exchange.

In the coming years, the growing acceptance of UPI beyond India's borders could reduce dependence on traditional cross-border payment systems like SWIFT, offering users a faster, cost-effective, and more user-friendly alternative.

3. UPI Now Supports Linking of International Mobile Numbers for NRIs

The NPCI has expanded UPI's Non-Resident Indians (NRIs) holding NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts.

To link an international mobile number to UPI, users simply need to ensure that their number is registered with their respective bank account. After that, they can download a UPI-powered application that supports international numbers, such as iMobile, BHIM, or PhonePe, and complete the onboarding process.

Currently, international numbers from the following countries are eligible for UPI linkage:

• United States of America

• United Kingdom

• France

• Singapore

• Australia

• Canada

• Hong Kong

• Malaysia

• United Arab Emirates

• Saudi Arabia

• Oman

• Qatar

NRIs can now conveniently send money to family and friends, pay utility bills, and make merchant payments in India without the hassle of maintaining an Indian phone number.

Strengthening the financial ties between NRIs and their home country will make it easier to manage financial commitments remotely.

4. UPI-PayNow Interlinkage Facility for Cross-Border Payments

UPI-PayNow interlinkage facility (introduced in February 2023), marks a major advancement in cross-border payments between India and Singapore.

This initiative allows users in both countries to conduct instant, secure, and cost-effective transactions by leveraging their respective fast payment systems - India's UPI and Singapore's PayNow.

With this interlinkage, users can avail of several advantages, including lower transaction costs compared to traditional cross-border payment methods.

Funds can be transferred easily using a UPI ID, mobile number, or Virtual Payment Address (VPA) within a minute just as the way the domestic transactions are done.

Several major banks in India are now participating in this initiative, including Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank, and the State Bank of India. In Singapore, the service is supported by DBS Bank Singapore and Liquid Group, a non-banking financial institution. To know the complete list of banks for the UPI-PayNow linkage, click here.

As part of the regulatory framework, a daily transaction limit has been set at Rs 60,000, which is approximately equivalent to SGD 1,000.

5. UPI One World Wallet for Foreign Tourists in India

The UPI One World Wallet was introduced last year for foreign travellers visiting India. They can conveniently make payments at merchant locations using the UPI One World app by simply scanning QR codes.

The onboarding process is straightforward, requiring only a valid passport and visa to complete the full KYC process.

Foreign visitors can experience the convenience and security of the "Made in India" technology through the wallet, eliminating the need to carry cash and simplifying foreign exchange transactions.

Also, any unused balance can be transferred back to the original payment source, in compliance with foreign exchange regulations.

6. Cashback Offers on International Shopping with RuPay JCB Cards

RuPay JCB credit and debit cardholders can enjoy a 25% cashback on international point-of-sale (PoS) transactions in select countries, including Japan, Singapore, Indonesia, and the Philippines.

One of the key highlights of this feature is that there is no minimum transaction amount required to qualify for the cashback, provided the RuPay card is enabled for international transactions.

The cashback, however, is capped at Rs 3,000 per transaction and will be credited in Indian Rupee (INR).

Note that during the period spanning October 30, 2024, to January 29, 2025, users can earn up to a maximum of Rs 15,000 in cashback.

7. UPI Circle to Delegate Transactions to Trusted Family Members

The UPI Circle feature was introduced in August 2024 to address the needs of individuals who still rely on cash for their daily expenses as they do not manage their own finances through their own accounts.

This functionality allows a primary UPI user to delegate payment-making to trusted secondary users, such as immediate family members, offering a more convenient and controlled way to manage finances digitally.

With UPI Circle, a primary user can authorise up to five secondary users to carry out transactions.

Setting up a UPI Circle requires explicit consent from the primary user, who can choose between full or partial delegation.

Under the full delegation option, the primary user grants the secondary user complete authority to carry out transactions up to a predefined limit. The monthly transaction cap is set at Rs 15,000, with a per transaction limit of Rs 5,000.

This setup allows dependents, such as elderly family members or household help, to make essential purchases without needing direct access to the primary user's bank account.

For those who prefer a more controlled approach, the partial delegation option ensures that the primary user retains oversight of all transactions.

In this mode, secondary users can initiate payment requests, but each transaction must be reviewed and approved by the primary user before completion, ensuring greater financial control and accountability.

8. Instant Loans with UPI Credit Line Facility

The NPCI introduced in September 2023 a credit line facility linked to UPI, making access to instant credit much more seamless.

This feature allows individuals to obtain instant credit directly through their UPI-enabled apps such as BHIM, PayZapp, Paytm, GPay, and others.

In essence, it is a pre-approved credit facility that customers can use while making purchases via UPI.

The UPI credit line is offered by various banks and financial institutions based on an individual's creditworthiness. Once approved, users can draw funds from their assigned credit limit to make purchases, pay bills, or meet other financial needs.

This facility eliminates the lengthy approval processes and documentation typically associated with traditional loans, making credit access faster and more convenient.

[Read: The Top 10 Myths And Mistakes of Using Instant Loan Apps]

To access the UPI credit line, users must apply through their linked bank by submitting necessary documents, including income statements, identity proof, and address proof.

The bank then evaluates the applicant's financial profile, considering factors such as income, credit score, and repayment history, to determine an appropriate credit limit and terms.

However, the exact application process and eligibility criteria may vary across financial institutions.

For enhanced security, NPCI recommends setting separate UPI PINs for the credit line and the bank savings account. Click here to learn more on credit line on UPI.

9. Increase in UPI Lite Transaction and Wallet Limits

The RBI has increased the transaction and wallet limits for UPI Lite, a feature designed to facilitate small-value offline transactions.

The transaction limit has been increased from Rs 500 to Rs 1,000, while the wallet limit has been raised from Rs 2,000 to Rs 5,000.

The enhanced limits are expected to benefit a wide range of users, especially those residing in remote or rural areas where stable internet access can be a challenge.

To Conclude...

With UPI's continuously evolving features, as a user, you are set to experience a more efficient, secure, and inclusive digital payments ecosystem.

Staying informed about these updates is crucial to ensure that you make the most of UPI's capabilities while enjoying enhanced convenience and financial flexibility.

However, as the scope and capabilities of UPI grow, it is also crucial to remain vigilant about security.

To protect your UPI transactions, it's important to use strong, unique UPI PINs that are difficult to guess and avoid reusing them across different platforms. Enabling 2FA (Two-Factor Authentication) whenever possible can further enhance the security of your account.

Additionally, regularly monitoring transaction alerts allows you to quickly identify any suspicious activity and report it to your bank immediately.

By being proactive and mindful of security, you can continue to benefit from the convenience of UPI while safeguarding your financial information.

Use UPI responsibly. Be thoughtful in your approach.

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MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.
 

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