The Reserve Bank of India (RBI) has provided significant relief to UPI customers. The central bank has raised the limit for making UPI payments from Rs 1 lakh to Rs 5 lakh.
Following the three-day bimonthly Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das told the media that UPI has become the most popular means of payment due to its convenience characteristics. He stated that the MPC has raised the limit for making payments using UPI to Rs 5 lakh. Currently, the payment limit for UPI is Rs 1 lakh.
Following the MPC meeting, Shaktikanta Das addressed the media and stated that the Reserve Bank has reviewed the limits for various use cases and has increased them. These include categories such as capital markets, IPO subscriptions, loan recovery, insurance, medical, and educational services.
The RBI Governor said that the decision to increase the UPI payment limit from Rs 1 lakh to Rs 5 lakh per transaction was taken in the MPC meeting as direct and indirect tax payments are generally routine, regular, and of high value. He informed that necessary instructions in this regard will be issued separately.
Notably, according to the RBI, the UPI user base has reached 42.4 crore. The proposal to introduce ‘Delegated Payments’ in UPI is expected to increase the reach and usage of digital payments across the country.
Data from the National Payment Corporation of India (NPCI) shows that payments made through the Unified Payments Interface (UPI) grew by 45% annually. Additionally, the value of transactions increased by more than 35% to reach Rs 20.64 trillion. For the third month in a row, the total amount of transactions has surpassed Rs 20 trillion.
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Source: DD News
