RBI Governor Shaktikanta Das recently announced significant enhancements to UPI transaction limits, including an increase for UPI 123Pay and the UPI Lite wallet.
Key Changes to UPI Transaction Limits
In a positive development for UPI users, Governor Das stated that the Reserve Bank of India (RBI) is raising transaction limits as part of his monetary policy statement. He highlighted UPI’s transformative impact on India’s financial landscape by making digital payments more accessible and inclusive.
The new transaction limits are as follows:
– UPI 123Pay: The per transaction limit has been increased from ₹5,000 to ₹10,000.
– UPI Lite Wallet: The wallet limit has been raised from ₹2,000 to ₹5,000, and the per transaction limit from ₹500 to ₹1,000.
Governor Das also proposed introducing a verification facility for the Real Time Gross Settlement System (RTGS) and the National Electronic Funds Transfer (NEFT) system, allowing senders to confirm the recipient’s name before completing transactions. This feature aims to reduce errors and the potential for fraud.
Understanding UPI Lite Wallet & UPI 123Pay
UPI Lite allows users to conduct UPI transactions without entering a UPI PIN for amounts up to ₹500. The upcoming changes will increase this limit to ₹1,000, enhancing convenience for users. To utilize UPI Lite, users must fund their wallets, which can now hold up to ₹5,000, up from the previous limit of ₹2,000.
UPI 123Pay is tailored for feature phone users, offering four distinct methods for making UPI payments:
1. Pre-defined IVR number
2. Missed call payment
3. OEM-enabled payments
4. Sound-based technology
These options ensure that feature phone users can securely execute UPI transactions without needing a smartphone or internet access.