RBI Increases UPI Limits for Hospitals and Educational Institutes to Rs 5 Lakh
By siliconindia | Friday, December 8, 2023
During the bi-monthly Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das announced an increase in UPI payment limits for hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction. According to Das, this adjustment is aimed at enabling consumers to make higher-value UPI payments for education and healthcare purposes. Additionally, the RBI has proposed raising the limits for e-mandates in recurring online transactions to Rs 1 lakh per transaction, up from the previous Rs 15,000. Das emphasized that this move is expected to boost the adoption of e-mandates, particularly in areas such as mutual fund subscriptions, insurance premium payments, and credit card repayments.
The Unified Payments Interface (UPI) is a real-time payment system in India that allows seamless, instant transactions between different banks using smartphones. Launched by the National Payments Corporation of India (NPCI), UPI transformed digital transactions by providing a unified platform for various banking services. It operates by linking bank accounts to a mobile number, enabling users to make payments, transfer funds, and perform other financial activities through UPI-enabled apps. Users create a unique UPI ID, which acts as an identifier for transactions, eliminating the need for sharing sensitive bank details.
Providing unmatched convenience, UPI enables round-the-clock transactions, encompassing peer-to-peer payments, bill splitting, and online shopping. Its seamless interoperability among banks streamlines money transfers, contributing to its widespread acceptance among both businesses and individuals. Furthermore, UPI plays a pivotal role in supporting government initiatives, including direct benefit transfers and the promotion of a cashless economy.
Adhil Shetty, CEO of BankBazaar.com, said on RBI's announcements, "RBI’s proposal from earlier today to elevate UPI payment limit from 1 lakh to 5 lakh for education and hospital payments is a critical step that will facilitate a secure and seamless payment experience for countless users who rely on UPI for payment-related needs. Education expenses usually tend to be high and very time-bound. Increasing the UPI limit for education up to 5L means students and parents will be able to make immediate hassle-free cash payments without needing to resort to instruments such demand drafts".
Read More News :