Reserve Bank of India (RBI) Governor Shaktikanata Das on Friday announced several decisions on the Unified Payments Interface (UPI), including raising the Unified Payments Interface (UPI) payment limit to hospitals and educational institutions to ₹5 lakh from ₹1 lakh.
UPI limits increased:
While unveiling the bi-monthly monetary policy, Das announced to increase the UPI payment limit for hospitals and educational institutions from ₹1 lakh to ₹5 lakh. The limit for various categories of UPI transactions are revised from time to time.
“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,” he said.
He said that the updated limit will help the people to make UPI payments of higher amounts for education and healthcare purposes.
The UPI, India’s mobile-based fast payment system, enables users to make instantaneous, round-the-clock payments via Virtual Payment Address (VPA.
E-mandate limit for recurring payments increased:
In another key development, the central bank also announced to enhance the limit under e-mandates for making payments of recurring nature to ₹1 lakh from ₹15,000 per transaction.
Das said that under the e-mandate framework, an additional factor of authentication (AFA) is required for recurring transactions exceeding ₹15,000 at present.
“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,” the governor said.
Individuals making recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments will benefit.
The RBI governor said the new measure will further accelerate the usage of e-mandates.
The Monetary Policy Committee (MPC) decided to keep the key repo rate unchanged for the fifth consecutive time.
(With inputs from agencies)