The Reserve Bank of India ( RBI ) has hiked the transaction limits of UPI Lite from ₹500 to ₹1000/-, while announcing an increase in the transaction limits for UPI 123Pay and UPI Lite, aiming to make digital transactions even more accessible for users. The per-transaction limit for UPI 123Pay has been increased from ₹5,000 to ₹10,000, while the wallet limit for UPI Lite has been raised from ₹2,000 to ₹5,000.
Speaking at the RBI Monetary Policy Committee meeting, Governor Shaktikanta Das highlighted the significant impact of UPI on India’s financial landscape by making digital payments more inclusive. He added, “To further enhance UPI adoption, two key changes have been announced: increasing the per-transaction limit for UPI 123Pay to ₹10,000, and raising the UPI Lite wallet limit to ₹5,000 with a per-transaction cap of ₹1,000.”
Industry experts are optimistic about the change, viewing it as a substantial step forward for financial inclusion.
In a related development, the RBI has announced a new Beneficiary Account Name Look-up Facility for Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. This feature, already available for UPI and IMPS, allows users to verify the recipient’s name before completing a fund transfer, reducing errors and mitigating risks of fraud.
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During the monetary policy statement, the RBI also announced an increase in the limit for tax payments via UPI from ₹1 lakh to ₹5 lakh, enhancing convenience for taxpayers.
On a side note, the Monetary Policy Committee observed that food price pressures have been interrupting the ongoing disinflation process, posing challenges for the final descent of inflation to the target. Considering that the path of disinflation has to be sustained till inflation reaches the 4 per cent target on a durable basis, MPC also decided, by a 5-1 majority, to keep the policy repo rate unchanged at 6.5 per cent. The MPC also decided by a majority of 5-1 to remain focused on withdrawal of accommodation so as to ensure that inflation progressively aligns with the target, while supporting growth.
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