Governor Shaktikanata Das of the Reserve Bank of India (RBI) made a number of announcements on Friday regarding the Unified Payments Interface (UPI), one of which was raising the payment limit to hospitals and educational institutions through the API from ₹1 lakh to ₹5 lakh.
UPI limits increased:
Das announced raising the UPI payment limit for hospitals and educational institutions from ₹1 lakh to ₹5 lakh during the announcement of the bi-monthly monetary policy. The upper limit for different UPI transaction categories is periodically adjusted.
“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 stated.
According to him, the revised cap will enable consumers to make larger UPI payments for things like healthcare and education.
Users of India’s mobile-based UPI fast payment system can send and receive money instantly, anywhere in the world, using a Virtual Payment Address (VPA).
Read also: Indonesia could make UPI deal with India
Recurring payment e-mandate limit raised:
The central bank also declared that the limit under e-mandates for recurring payments would be increased to ₹1 lakh from ₹15,000 per transaction, which is another significant development.
According to Das, recurring transactions over ₹15,000 currently require an additional factor of authentication (AFA) under the e-mandate framework.
”The governor stated, “It is now proposed to raise this limit to ₹1 lakh per transaction for recurring payments of credit card repayments, insurance premium subscriptions, and mutual fund subscriptions.
The beneficiaries are those who make regular payments for credit card repayments, insurance premium subscriptions, and mutual fund subscriptions.
The governor of the RBI stated that the new initiative will hasten the use of e-mandates.
For the fifth time in a row, the Monetary Policy Committee (MPC) chose to maintain the key repo rate at its current level.
Read also: RBI Monetary Policy committee: key highlights
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