Paytm, one of India’s most popular digital payment platforms, has introduced a new feature that allows users to make UPI payments without entering a PIN. This feature, called “UPI Lite Auto Top-Up,” is designed to make transactions faster and more convenient. If you’re a Paytm user, this update is bound to change the way you handle online payments.

How Does Paytm UPI Lite Work?

Unified Payment Interface (UPI) has revolutionized digital payments in India, allowing seamless transactions across various platforms. Paytm, being one of the leading platforms, has now added an exciting feature called UPI Lite Auto Top-Up. This new feature allows users to recharge their UPI Lite balance automatically without having to manually add funds each time.

PINless Payments for Transactions up to ₹500

One of the most significant advantages of the Paytm UPI Lite feature is that users can make UPI payments up to ₹500 without entering a PIN. This makes the process faster and more user-friendly, especially for smaller transactions. Once you’ve set your recharge limit, Paytm will automatically top up your balance as needed, so you don’t have to worry about manually adding money each time.

How Does the Auto Top-Up Feature Work?

Paytm UPI Lite users can set a fixed amount for the auto top-up feature. When the balance in your UPI Lite account is reduced, money will be automatically added from your linked bank account. This process happens without any intervention, so users don’t need to manually recharge their accounts. The top-up feature ensures that you can make quick payments without interruptions.

Limitations to Keep in Mind

While the convenience of auto top-up is a major plus, there are a few limitations. UPI Lite users can top up their accounts automatically up to ₹2,000 per day. Additionally, you can deposit money into your UPI Lite account only five times a day. Despite these limitations, the feature offers a hassle-free payment experience for those who make frequent smaller payments.

Benefits of UPI Lite Auto Top-Up

1. Seamless Transactions: Pay up to ₹500 without entering a PIN for quicker transactions.
2. Automatic Balance Recharge: Set your limit and let the system top up your balance automatically.
3. Enhanced Convenience: Spend up to ₹2,000 per day with minimal effort, saving time and avoiding manual recharges.
4. Five Deposits Per Day: You can recharge your UPI Lite balance five times a day, ensuring flexibility for frequent users.

Conclusion

Paytm’s UPI Lite Auto Top-Up feature is a welcome addition for users looking to simplify their payment process. By eliminating the need to manually add funds or enter a PIN for small transactions, Paytm is making digital payments more efficient than ever. Whether you’re making quick payments for shopping, food delivery, or utility bills, this feature is designed to save you time and effort.

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However, as the volume of digital transactions increases, financial experts caution that excessive use of UPI could bring individuals under the radar of the Income Tax Department. The department is closely monitoring large-scale UPI transactions, especially those involving significant deposits and withdrawals in bank accounts.

The Income Tax authorities have set limits on the amount of money that can be deposited or withdrawn without attracting their attention. For instance, if there are large amounts deposited into or withdrawn from a bank account beyond a certain threshold, it may trigger scrutiny. In particular, if the annual deposit in a savings account exceeds Rs. 10 lakh, the transaction details are flagged and reported to the Income Tax Department.

To track such transactions, the Income Tax Department is leveraging artificial intelligence and advanced data analytics. These technologies help authorities identify discrepancies in transaction patterns and ensure that taxpayers’ income declarations match their financial activity.

Under Section 285 BA of the Income Tax Act 1961, there are clear restrictions regarding the deposit of cash into bank accounts. The department will issue notices to individuals whose transactions do not align with their income tax returns, especially when the source of funds is not explained or is inconsistent with the declared income.

This means that excessive UPI transactions or unexplained large deposits could lead to tax notices, penalties, and a thorough investigation by the Income Tax Department. As a result, individuals engaging in high volumes of transactions should ensure that their financial activities are in line with their reported income to avoid unnecessary legal trouble.

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A recent Local Circles survey revealed that 75% of users oppose the idea of paying fees for UPI payments. Interestingly, only 22% indicated they would continue to use UPI if charges were implemented. Additionally, 38% of respondents rely on UPI for half of their payment transactions, surpassing traditional methods like debit and credit cards.

The survey, conducted across 308 districts from July to September, gathered 15,598 responses on the topic of UPI transaction charges. Localcircles plans to present these findings to the central finance department and RBI to influence future decisions on merchant discount rates.

NPCI forecasts a 57% increase in UPI transactions by 2023-24, surpassing 131 billion transactions valued at Rs. 199.89 lakh crores. The industry is poised for significant growth, but the debate over potential charges could shape the future landscape of UPI payments.

The post The Rise of UPI Payments: Challenges and Future Trends appeared first on Vizag One.

EMI facility on UPI payments allows customers to convert their transactions into manageable installments, offering flexibility in making larger purchases. The service is applicable for both online and offline transactions, catering to a wide range of customer needs. This move by Bank of Baroda is seen as a significant enhancement in the digital payment ecosystem, especially during the festive season.

Ravindra Roy, Wholetime Director of BOB Card Limited, emphasized the importance of providing additional services to customers through innovative solutions like EMI on UPI payments. While EMI options offer convenience, it is essential for users to exercise caution and consider their financial capabilities before opting for such services.

Experts advise comparing interest rates and terms across different banks and UPI apps to make informed decisions regarding EMI payments. Choosing a suitable tenure aligned with one’s financial situation and repayment preferences can help manage the overall cost effectively.

The post Bank of Baroda Introduces EMI Service on UPI Payments via RuPay Credit Cards appeared first on Vizag One.

The surge in digital transactions can be directly attributed to the widespread adoption of UPI services, which gained prominence, especially during the period of demonetization. As a testament to their growing popularity, the Reserve Bank of India has been actively fostering the expansion of UPI services, enhancing the convenience and efficiency of digital payments.

Recently, at the Global Finec Fest 2024, Reserve Bank of India’s Deputy Governor T. Rabi Shankar unveiled plans for an interoperable cash deposit feature through UPI. This innovative facility will enable customers to deposit cash seamlessly into cash deposit machines using their UPI app, eliminating the need for a physical debit card.

The National Payments Corporation of India (NPCI) has outlined the UPI Interoperable Cash Deposit (ICD) feature, allowing customers to deposit cash into their own or other bank accounts at ATMs. By leveraging their mobile number linked to UPI, along with Virtual Payment Addresses (VPA) and account IFSCs, users can effortlessly deposit cash, transcending the limitations of traditional banking methods.

Experts anticipate that the UPI ICD feature will streamline cash deposits at ATMs, offering a more convenient and secure alternative to the existing debit card-based transactions. The phased rollout of this feature by banks indicates that consumers can look forward to leveraging the UPI interoperable cash deposit facility in the near future, simplifying their banking experience.

With the UPI ICD system mirroring the user-friendly interface of UPI cards for cash withdrawals, customers can now transact seamlessly through their UPI apps, heralding a new era of digital banking convenience.

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