Several changes to the Unified Payments Interface (UPI) system and other financial aspects are set to take effect from June 1. The new measures aim to improve security and reduce fraud in digital transactions. Key changes include additional verification in UPI for high-value payments, visibility of verified name of the recipient before completing a transaction, ATM related changes, among other things.
People should take note of these changes to ensure that they can continue using UPI services without disruption. Users may need to update their apps, verify account details carefully before making payments. They must remain aware of withdrawal limits in ATMs to avoid unexpected charges.
Here's What's Changing
1. UPI payments are set to see stronger security measures in 2026 beyond just OTP-based verification. For high-value transactions, apps like Google Pay, PhonePe and Paytm will no longer rely only on 4 or 6-digit PINs. Users will need additional authentication. This may include biometric verification such as fingerprint or face recognition. Some transactions may also require two-factor or device-based verification to reduce fraud risks.
2. From June, UPI apps will introduce pre-transaction name verification to reduce wrong transfers. Before completing a payment, users will see the verified official name of the recipient fetched from a secure database. This step will help confirm details before sending money.
3. UPI cardless ATM withdrawals will now be counted under a bank's monthly free withdrawal limit. If users exceed the permitted number of free transactions, charges will apply, similar to regular debit card withdrawals.
4. For taxpayers, the most important date is June 15. It will mark the deadline for the first advance tax instalment for the financial year 2026-27. Individuals with a tax liability above Rs 10,000 must pay 15% of their advance tax by this date. According to the rules, missing the deadline will lead to a 1% monthly interest penalty.
5. Reports indicate that the Employees' Provident Fund Organisation (EPFO) is also testing a new system to allow provident fund withdrawals through UPI. If implemented, this will make withdrawals faster and reduce dependence on traditional approval processes.
6. Under updated 2026 tax rules, PAN is no longer mandatory for routine cash deposits above Rs 50,000. But once the cumulative cash deposits or withdrawals equal or exceed Rs 10 Lakh in a single financial year, users will need to comply with PAN requirements.
7. The PAN quoting threshold for buying or selling immovable property has been increased from Rs 10 lakh to Rs 20 lakh. Reporting limits for property transactions are now compulsory for property deals above Rs 45 lakh, as well as for gift deeds and joint development agreements.
ALSO READ: EPFO 3.0 ATM Withdrawal: Does It Weigh On Pension? Here's All You Need To Know
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