RBI Raises UPI Payment Limit and E-Mandate Cap
Governor Shaktikanta Das announces major updates on UPI and e-mandates during the bi-monthly monetary policy, elevating UPI payment limits for hospitals and educational institutions from ₹1 lakh to ₹5 lakh. The move aims to facilitate larger transactions for educational and healthcare purposes, enhancing user flexibility.
Reserve Bank of India (RBI) Governor Shaktikanta Das announced significant updates on the Unified Payments Interface (UPI) during the bi-monthly monetary policy unveiling on Friday. Among the key decisions, the UPI payment limit for hospitals and educational institutions has been increased from ₹1 lakh to ₹5 lakh.
The move to elevate the UPI transaction limit aims to facilitate larger payments for educational and healthcare purposes, providing users with the flexibility to conduct transactions of higher amounts seamlessly.
Governor Das highlighted, "It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from ₹1 lakh to ₹5 lakh per transaction." The revision of UPI limits for various transaction categories is a routine practice.
The UPI, India's mobile-based fast payment system, allows users to make instantaneous payments round-the-clock using Virtual Payment Address (VPA).
In a parallel development, the central bank also increased the limit under e-mandates for recurring payments. The cap has been raised substantially from ₹15,000 to ₹1 lakh per transaction. Das emphasized that, under the e-mandate framework, an additional factor of authentication (AFA) is presently required for recurring transactions exceeding ₹15,000.
"It is now proposed to enhance this limit to ₹1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions, and credit card repayments," Governor Das stated. This adjustment will particularly benefit individuals engaged in recurring payments for mutual funds, insurance premiums, and credit card repayments.
The RBI governor expects that the elevated e-mandate limit will further accelerate the adoption and usage of e-mandates, offering more convenience to users making recurring payments.
The Monetary Policy Committee (MPC) concurrently decided to maintain the key repo rate unchanged for the fifth consecutive time, indicating stability in the central bank's monetary policy approach.
(With inputs from agencies)
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