RBI Elevates UPI and Fortifies Financial System with Climate Risk Portal

The Reserve Bank of India increased the UPI Lite wallet limit to Rs 5,000, with a per-transaction cap of Rs 1,000, aimed at boosting mobile payments. Additionally, the introduction of a beneficiary name look-up for RTGS and NEFT is set to enhance transaction security. A new climate risk information system, RB-CRIS, will address climate-related financial risks.

The Reserve Bank of India (RBI) has taken significant strides in the digital payment landscape by elevating the UPI Lite wallet limit to Rs 5,000 and enhancing the per-transaction threshold to Rs 1,000. This move aims to broaden the scope of the UPI instant payment system via mobile phones, encouraging more widespread adoption among users.

Additionally, RBI Governor Shaktikanta Das unveiled plans to implement a beneficiary account name look-up facility for the Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) systems. This initiative will allow users to verify the name of beneficiaries before making transactions, thus reducing the chances of erroneous transfers and fraud.

In light of climate change posing a considerable threat to the financial system, the RBI is also launching the Reserve Bank Climate Risk Information System (RB-CRIS). This portal will bridge existing data gaps and provide regulated entities with access to high-quality climate data. The initiative underscores the bank's commitment to bolstering the stability of financial institutions through comprehensive climate risk assessments.

(With inputs from agencies.)