RBI Boosts UPI Transaction Limits to Enhance Digital Payment Access

The Reserve Bank of India has raised transaction limits for UPI, particularly for non-smartphone users, enhancing UPI123Pay's cap from Rs 5,000 to Rs 10,000. RBI also increased UPI Lite wallet limits, simplifying low-value payments and reducing fraud risk by extending name verification for RTGS and NEFT transactions.

The Reserve Bank of India (RBI) is taking significant steps to boost digital payments and financial inclusion nationwide by increasing transaction limits for the Unified Payments Interface (UPI) services, specifically aimed at users of non-smartphone mobile devices. Announced by RBI Governor Shaktikanta Das, these upgrades are part of a broader push to enhance accessibility and convenience in the digital payment ecosystem.

A key change is the increase in the per-transaction limit for UPI123Pay, a feature that facilitates UPI payments without internet connectivity, from Rs 5,000 to Rs 10,000. Launched in March 2022 by the National Payments Corporation of India (NPCI) in collaboration with the RBI, UPI123Pay is designed to empower feature phone users by providing them access to seamless digital transactions.

Governor Das noted that UPI has been a revolutionary force in India's payment landscape, promoting accessibility through innovation. The new measures also raise the UPI Lite wallet limit from Rs 2,000 to Rs 5,000, with the per-transaction limit enhanced from Rs 500 to Rs 1,000. Additionally, a vital development is the introduction of a beneficiary account name lookup facility for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems, expanding beyond the existing UPI and Immediate Payment Service (IMPS) framework. This facility aims to minimize errors and fraud by enabling remitters to confirm the receiver's account details before proceeding with transactions.

(With inputs from agencies.)