Digital payments have become increasingly popular in India, providing an easy and efficient way for merchants and customers to make transactions on the go. The Unified Payments Interface (UPI) has played a significant role in transforming the interoperability of fund transfers, making it much simpler to receive or pay money. In March 2023 alone, UPI recorded a staggering 8.7 billion transactions.

However, according to a report by CLSA, digital payment methods like UPI are expected to reach a saturation point by FY27, signaling the need for technological advancements to remain relevant in the market. By FY27, digital payments are anticipated to account for 46% of total GDP consumption.

One of the reasons for UPI’s widespread adoption is the trust it has earned from customers due to its seamless and secure transactions. Nevertheless, UPI 2.0 aims to overcome any remaining limitations, driving the digital payment ecosystem to new heights.

The latest technological advancements will streamline the payment process, resulting in faster, more secure, and more convenient transactions. Additionally, with a greater focus on data privacy and security, customers can trust that their financial information is well protected. UPI 2.0 will also facilitate integrating multiple services, such as bill payments, investments, and loans, under a single platform, making it easier for customers to manage their finances.

What is UPI 2.0?

UPI 2.0 is the latest version of India’s popular Unified Payments Interface (UPI) digital payment platform. It offers several new features, including setting up automated payment schedules, linking overdraft accounts, and improved security features. These new features make the payment process simpler, faster, and more convenient for users. UPI 2.0 represents a significant step forward in the evolution of digital payments in India.

UPI 2.0 Latest Features 

Unified Payments Interface (UPI) 2.0 is the latest version of India’s digital payment platform that has revolutionized the way transactions are made in the country. With new features and improvements to existing ones, UPI 2.0 promises to make digital transactions even more secure, seamless, and convenient. Here are some of the key features of UPI 2.0.

Overdraft Accounts Linking

One of the most significant features of UPI 2.0 is the ability to link overdraft accounts. It allows users to make transactions even when their account balance is insufficient, as the payment amount is debited from their overdraft account. This is a significant benefit for users who may need to make urgent payments but do not have enough funds in their accounts.

One-Time Mandate

The One-Time Mandate (OTM) feature is another significant addition to UPI 2.0. Users can authorize a payment for a set amount and frequency with this feature. The payment is then automatically made on the specified date without requiring further intervention from the user. This feature is especially useful for recurring payments, such as loan installments, utility bills, and insurance premiums.

Invoice in the Inbox

UPI 2.0 now allows users to receive invoices in their inbox, making it easier to keep track of payments and verify the details of transactions. This feature also allows users to view and accept the invoice before payment, ensuring transparency and security.

Signed Intent and QR

UPI 2.0 also introduces the Signed Intent and QR feature, which enhances the security of transactions. With this feature, users can generate a signed QR code containing payment details. The QR code can then be scanned by the recipient, who can verify the details before accepting the payment.

Increased Transaction Limits

UPI 2.0 also increases the transaction limits for some types of transactions. For example, the transaction limit for person-to-person (P2P) transactions has been increased from INR 1 lakh to INR 2 lakh. This makes it easier for users to make larger transactions using the UPI platform.

Unlocking the Benefits of UPI 2.0: How Different Industries Can Benefit from Digital Payments


UPI 2.0 simplifies the payment process for patients in the healthcare industry by allowing them to pay for consultations, treatments, and medications directly from their bank accounts. Healthcare providers can also use UPI 2.0 to pay their suppliers and vendors, streamlining their operations and improving cash flow.


UPI 2.0 makes it easier for students to pay for tuition, fees, and other expenses in the education industry by allowing them to make payments directly from their bank accounts. Educational institutions can also use UPI 2.0 to pay their suppliers and vendors, reducing administrative costs and improving cash flow.


UPI 2.0 offers a faster and more convenient payment option for customers in the retail industry by allowing them to make payments directly from their bank accounts using their mobile phones. Retailers can also use UPI 2.0 to pay their suppliers and vendors, streamlining their operations and improving cash flow.

Travel and tourism: 

UPI 2.0 enhances the payment experience for customers in the travel and tourism industry by allowing them to pay directly for bookings, reservations, and other expenses from their bank accounts using their mobile phones. Travel and tourism businesses can also use UPI 2.0 to pay their suppliers and vendors, improving cash flow and streamlining operations.

Peer-to-peer payments:

UPI 2.0 enables users to send and receive money instantly and directly from their bank accounts using a mobile phone, request money from others, set payment reminders, and split bills with friends and family.

Online shopping:

UPI 2.0 provides a faster, easier, and more secure way for users to make online payments directly from their bank accounts without entering card details or net banking credentials.

Bill payments:

UPI 2.0 enables users to pay their bills directly from their bank accounts using their mobile phones, eliminating the need to visit multiple websites or apps.


UPI 2.0 allows e-commerce platforms to offer customers the option of paying directly from their bank accounts using UPI, reducing friction in the payment process and enhancing security.

Small businesses: 

UPI 2.0 benefits small businesses by allowing them to receive payments directly from customers using UPI, eliminating the need for expensive Point-of-Sale (POS) machines and making payment tracking easier.

Enhancing Adoption of UPI 2.0 through Improved Features

Increased transaction limit: 

UPI 2.0 has increased the transaction limit from Rs. 1 lakh to Rs. 2 lahks, which can attract more users and encourage them to make larger transactions.

Overdraft facility:

UPI 2.0 offers an overdraft facility to users, allowing them to overdraw their accounts up to a certain limit. This feature can benefit users who face cash shortages and need immediate funds.

QR code payments:

UPI 2.0 offers the option to make payments using QR codes, which can be more convenient than entering bank account details for making a payment. QR code payments are fast and secure, making them a popular option for users.

Invoice in the inbox:

UPI 2.0 allows businesses to send invoices directly to customers through the UPI platform. This feature can reduce the need for manual invoicing and make the payment process more streamlined.

One-time mandate:

UPI 2.0 introduces a one-time mandate feature that allows users to authorize a recurring payment for a fixed amount. This feature can be useful for users who must make regular payments for bills, subscriptions, and other services.

Signed intent and QR:

UPI 2.0 also introduces a signed intent and QR feature that can help users to authenticate their transactions. Users can now verify the merchant details and transaction amount through a signed QR code, ensuring a more secure transaction.

Split payment: 

UPI 2.0 offers a split payment option, allowing users to split a payment between multiple beneficiaries. This feature can be useful for users who must pay for a shared expense with friends or family.

UPI mandate for recurring payments:

UPI 2.0 introduces a mandate for recurring payments, which allows businesses to charge their customers’ accounts automatically for recurring payments. This feature can be beneficial for businesses that offer subscription-based services.


UPI 2.0 can attract more users and improve its adoption rate by incorporating these improved features. These features make the payment process more convenient and offer increased security and transparency for users. As UPI 2.0 continues to evolve and add new features, it has the potential to become a leading digital payment platform in India.


The author writes about fintech, banking, and future of SAAS services. He works as an SEO analyst at Easebuzz, so if you're looking for an account that tracks India's fintech scene, you should check out his Easebuzz blog.