Major News! With the latest UPI transaction limit rules, individuals can now make payments via UPI up to Rs.5 lakh per day
Reserve Bank of India Governor Shaktikanta Das has announced an increase in transaction limits for specific categories within the Unified Payments Interface (UPI).
The updated UPI transaction limit regulations now allow individuals to make payments via UPI up to Rs.5 lakh per day, compared to the previous cap of Rs.1 lakh. This adjustment is specifically applicable to payments made to hospitals and educational institutions.
The change aims to address sector-specific financial needs and enhance the macroeconomic resilience of critical segments, potentially leading to increased financial transactions and greater ease.
A financial marketplace, notes that education expenses are typically high and time-sensitive. The increase in the UPI limit for education to Rs.5 lakh means that students and parents can now make immediate and hassle-free cash payments without relying on instruments like demand drafts.
In the August policy update, Governor Das proposed the introduction of conversational payments on UPI, allowing users to interact with an AI-powered system for secure transaction initiation and completion. This feature will be available on both smartphone and feature phone-based UPI platforms, initially supporting Hindi and English, with additional Indian languages to follow.
The RBI also raised the transaction limit of UPI Lite to Rs.500 from Rs.200. UPI Lite is accessible through various payment apps such as Paytm, BHIM App, and GooglePay, among others. Several banks, including Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank of India, and Utkarsh Small Finance Bank, are already active on the UPI Lite platform.
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