UPI Transaction Limits Hiked: The Reserve Bank of India (RBI) governor Shaktikanta Das on Friday reported that the Unified Payments Interface(UPI) exchange/transaction limits for the specific transaction have been hiked. Additionally, the governor of the central bank announced new limits for recurring payment e-mandates.
As indicated by the new UPI exchange limit rules, people can make installments through UPI up to Rs 5 lakh rather than the prior Rs 1 lakh for explicit installments. These installment categories include clinics/hospitals and educational organizations. The limit for different classifications of Unified Payments Interface (UPI) exchanges has been evaluated now and again.
UPI Transaction Limits Hiked | Rules Changed for e-mandates for recurring payments
The RBI lead representative said “It is presently proposed to upgrade the UPI transaction limit for installment to hospitals/clinics and educational organizations from Rs 1 lakh to Rs 5 lakh for every transaction. Along with this, the customers will be able to make higher UPI payments for education and healthcare purposes. This considers bigger transactions, working with smoother monetary activities for substances in medical services and education. He asserts that this decision will provide new opportunities for substantial and streamlined transactions within these critical domains.”
As indicated by Castelino, as far as possible improves the effectiveness of UPI exchanges/transactions, lining up with the developing interest in digital payments. He says it gives a more strong system to work with transactions for the benefit of organizations in medical services and schooling, cultivating simplicity of carrying on with work. This choice by the RBI mirrors a proactive way to deal with adjusting computerized installment frameworks to the particular prerequisites of key areas, adding to the general progression of India’s digital economy.
E-mandate for repeating payments: New standards
The RBI has set up e-mandates for making installments/payments that are repeating in nature. As far as possible which extra variable confirmation is required is Rs 15,000. This breaking point has now been enhanced to Rs 1 lakh for mutual funds subscriptions, insurance premium subscriptions, and credit card reimbursements.
“e-Mandates for making payments/installments of repeating nature to have become well known among clients,” the central bank governor notes. He said in his proclamation, that for recurring transactions exceeding Rs 15,000, this framework currently requires an additional factor of authentication (AFA). It is presently proposed to improve this limit to Rs 1 lakh for every transaction for repeating payments of mutual fund subscriptions, insurance payment memberships, and Visa reimbursements. This action will additionally speed up the utilization of e-commands.
The RBI lead representative made these declarations as a feature of the Money-related strategy proclamation for the long month of December 2023. The Monetary Policy Committee (MPC) chose to keep the key repo rate unaltered for the 5th consecutive time.