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The Reserve Bank of India has increased transaction limits with respect to UPI to ensure smooth payments.
The Reserve Bank of India announced on Wednesday that it has increased the limits for the widely used digital payment system Unified Payment Interface (UPI) from the current Rs 2,000 to Rs 5,000.
“It has been decided to enhance the per transaction limit in UPI123Pay from Rs 5,000 to Rs 10,000….it has been decided to increase the UPI lite wallet limit from Rs 2,000 to Rs 5,000 and per transaction limit to Rs 500 from Rs 100.The move is aimed at encouraging the wider adoption of UPI and make it more convenient and inclusive,” says Shaktikanta Das, while ensuring higher transaction limits for UPI123Pay and UPI Lite wallets, a strategic initiative designed to enhance the adoption of UPI.
He has also announced that the Monetary Policy Committee (MPC) has opted to maintain the repo rate at 6.50 percent for the tenth consecutive meeting.
The choice to adjust the UPI limit for UPI123 pay is beneficial for users of non-smartphones and feature phones. The RBI has raised the current payment cap to Rs 10,000 for this group.
This feature is designed for individuals who want to make digital payments through UPI but do not have internet access.
Users can now utilize their UPI Lite wallets to make payments of up to Rs 5,000, an increase from the previous limit of Rs 2,000. UPI Lite functions as a digital wallet on mobile devices, designed for handling small transactions.
UPI Lite allows users to maintain a balance limit, which has been increased from Rs 2,000 to Rs 5,000. This balance can be utilized for small-value transactions.
Industry experts consider this shift a major step forward for enhancing financial inclusion and promoting the use of digital payments in India.
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