RBI MPC meet:
UPI Lite per transaction limit hiked to Rs 1,000; UPI Lite wallet limit hiked to Rs 5,000
Oct 9, 2024
Synopsis
RBI MPC on UPI Limit: UPI lite transaction limit hiked: The UPI per transaction limit has been hiked to Rs 1,000 from Rs 500. Further, the UPI lite wallet limit has also been hiked to Rs 5,000 from Rs 2,000.
The Reserve Bank of India (RBI) has announced a hike in the UPI lite per transaction limit to Rs 1,000 from Rs 500 currently. The central bank has also hiked the UPI lite wallet limit to Rs 5,000 from currently Rs 2,000. The RBI also has hiked the UPI 123PAY per transaction limit to Rs 10,000 from Rs 5,000. The hike in transaction limits will help users make digital payments easier. The announcement was made in today's monetary policy meeting announcement.
The RBI governor said in his statement, "UPI has transformed India’s financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation. To further encourage wider adoption of UPI and make it more inclusive, it has been decided to (i) enhance the per-transaction limit in UPI123Pay from Rs 5,000 to Rs 10,000; and (ii) increase the UPI Lite wallet limit from Rs 2,000 to Rs 5,000 and per-transaction limit from Rs 500 to Rs 1,000."
As per Statement on Development and Regulatory Policies, "In order to encourage wider adoption of UPI, it has been decided to enhance the limits for the following products of UPI:
i) UPI123Pay: UPI123 was launched in March 2022, with a view to enable feature-phone users to use UPI. This facility is now available in 12 languages. Currently, the per-transaction limit in UPI123Pay is capped at Rs 5000. In order to widen the use-cases, in consultation with the stakeholders, it has been decided to enhance the per-transaction limit to Rs 10,000. Necessary instructions will be issued to NPCI shortly.
ii) UPI Lite: A limit of Rs 500 per transaction and an overall limit of Rs 2000 per UPI Lite wallet, is presently applicable, with the facility of auto-replenishment. To widen the scope of usage of this product, it has now been decided to increase the UPI Lite wallet limit to Rs 5,000 and per-transaction limit to Rs 1,000. The framework for facilitating small value payments in offline digital mode, issued by the Reserve Bank, under which UPI Lite has been enabled, will be suitably amended."
What is UPI Lite and UPI Lite wallet for UPI payments?
UPI lite helps individuals to make UPI payments without entering the UPI transaction PIN. Currently, such transactions can be done for up to Rs 500 per transaction. Going forward, an individual can make a UPI payment without a UPI PIN for up to Rs 1000 per transaction.
To use the UPI lite facility, an individual is required to put the money in the UPI lite wallet. An individual can add up to Rs 2,000 in the UPI lite wallet to make transactions without entering the UPI PIN. Now, an individual can add up to Rs 5,000 in the UPI lite wallet to make payments.
What is UPI 123PAY for UPI Payments?
UPI 123PAY is a UPI payment facility for feature phone users. There are four ways to make payment via UPI 123PAY. These are:
1. Pre-defined IVR number
2. Missed call pay
3. OEM-enabled payments
4. Sound-based technology
[The Economic Times]
