New Delhi: The Reserve Bank of India (RBI) has brought significant relief to UPI users by raising the payment limit from Rs 1 lakh to Rs 5 lakh.
RBI Governor Shaktikanta Das, addressing the media post the Monetary Policy Committee’s (MPC) bimonthly meeting, stated that UPI’s popularity as a payment method is due to its ease of use, prompting the MPC to enhance the transaction cap to Rs 5 lakh from the existing Rs 1 lakh limit.
Post the MPC meeting, Das conveyed that the Reserve Bank has reassessed and elevated the limits for various applications, encompassing sectors like capital markets, IPO subscriptions, loan repayments, insurance, and payments for medical and educational services.
The RBI Governor announced that the MPC decided to augment the UPI transaction limit to Rs 5 lakh because tax payments, both direct and indirect (delegated payments), are typically routine, regular and involve substantial amounts. He assured that detailed instructions would be issued separately.
Das also disclosed a proposal to compile data on digital lending applications to scrutinize unauthorized entities.
The central bank has proposed the implementation of continuous cheque clearing with ‘on-realisation-settlement’ within the Cheque Truncation System (CTS) as well.
Remarkably, the RBI reports that the UPI user base has swelled to ₹42.4 crore. The introduction of ‘Delegated Payments’ in UPI is anticipated to further expand digital payment adoption nationwide.
According to the National Payments Corporation of India (NPCI), UPI payments have witnessed a 45% annual increase. Transaction values have also grown by over 35%, reaching a total of ₹20.64 trillion, marking the third successive month of transactions surpassing ₹20 trillion.
