RBI MPC Meet: Upi users can now pay up to 5 lakh Rupees by using upi without any additional authentication formalities. Users can use these facilities for only a few specific purposes. So if you are using upi for online payments then you should read the latest announcement by the RBI for upi users so it will help you to use upi more effectively. We have provided you with the latest announcement of RBI in this article related to the payments by using upi.
Reserve Bank of India has increased the limit of transactions by using UPI for citizens. Users were able to pay lakh rupees by using upi earlier. But now users can pay up to 5 lakh rupees in hospitals and Educational institutes according to the guidelines of RBI. However apart from the hospitals and Educational Institute, the limit to pay by using UPI will remain 1 lakh.
Rs 2 lakh limit for upi
However, the maximum amount that can be transacted by using UPI remains at 1 lakh. but there are a few categories where users can spend up to a Maximum of 2 lakh Rupees from the UPI. users can invest in mutual funds, brocking, and AMC for up to Rs 2 lakh from UPI. Apart from this if you are involved in any loan or credit loan then you can pay the bill or rep payment your loan amount for the maximum of 2 lakh Rupees from the upi. However, it was announced by the RBI in December 2021 and applicants are using the benefits of this scheme from 2021. And now RBI has increased the limit of UPI transactions for the payment in hospitals and Educational Institutes also into 2023.
RBI guidelines for e-mandates
Right now, there’s a rule that says electronic mandates (e-mandates) can be used for transactions up to Rs 15,000 without extra verification. A lot of people, around 8.5 crore, have signed up for these e-mandates, and they’re handling transactions totaling nearly Rs 2,800 crore every month. Although the system is working well, there’s a suggestion from the RBI to increase the limit, especially for things like subscribing to mutual funds, paying insurance premiums, and settling credit card bills. This is because in these categories, the transactions are often more than Rs 15,000, and not many people are using this method. The RBI believes that raising the limit could encourage more people to use e-mandates in these areas.
Key Points in RBI Meeting
To help banks manage their funds better, the RBI has decided that starting from December 30, 2023, banks can now get back the money they deposited or repay the money they borrowed from the RBI, even on weekends and holidays. This applies to two facilities called the Standing Deposit Facility (SDF) and the Marginal Standing Facility (MSF).
The Standing Deposit Facility (SDF) was introduced in 2018, and it’s a way for banks to manage extra money without having to give anything as security. The Marginal Standing Facility (MSF) is like a backup plan for banks – they can borrow money from the RBI in emergencies when there’s not enough money flowing between banks. Currently, banks can use these facilities from 5:30 pm to 11:59 pm every day, including weekends and holidays. But if they want to take back the money they deposited or repay the money they borrowed during the weekends and holidays, they have to wait until the next working day in Mumbai. Now, with the new announcement, they can do these transactions even on weekends and holidays.