The Rs 5 lakh UPI transaction limit was raised for hospitals and educational institutions
Maharashtra’s Mumbai December 8, India: The Reserve Bank of India (RBI) has increased the maximum amount that can be transferred via UPI to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction.
Following a three-day meeting of the monetary policy committee, the RBI increased the UPI transaction limit and announced that this would facilitate higher-value online payments by consumers for healthcare and education.
The RBI periodically examines the limits for different UPI transaction categories.
India’s mobile-based fast payment system, the Unified Payments Interface (UPI), enables users to make instantaneous, round-the-clock payments using a Virtual Payment Address (VPA) that they have created. It has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
India has emerged as one of the fastest-growing ecosystems for fintech innovation and the government and the central bank have been instrumental in driving the globalisation of India’s digital payment infrastructure.
A key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India alone; other countries, too, benefit from it.
So far, several countries, including Sri Lanka, France, the UAE, and Singapore, have partnered with India on emerging fintech and payment solutions.
The RBI today announced plans to increase the cap on recurring payments made through e-mandates to Rs 1 lakh per transaction.
The beneficiaries are those who make regular payments for credit card repayments, insurance premium subscriptions, and mutual fund subscriptions.
According to the RBI, the new initiative will hasten the use of e-mandates even more.
“Customers are increasingly using e-Mandates to make recurring payments. In his monetary policy statement, RBI Governor Shaktikanta Das stated that “per this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000.”
