This update will open doors for seamless and hassle-free transactions across global borders in respective currencies, according to CNBC Awaaz report.
New Delhi: The Unified Payment Interface (UPI) is poised for a significant update as it will allow transactions to be conducted in dollars. Reportedly, the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) are actively engaged in discussions with SWIFT to materialise this shift. This update will open doors for seamless and hassle-free transactions across global borders in respective currencies, according to CNBC Awaaz report.
SWIFT, also known as Society for Worldwide Interbank Financial Telecommunication, is a globally recognised system which serves as the conduit for inter-country bank transactions.
Earlier this month, the RBI Governor Shaktikanta Das, during the Monetary Policy Committee (MPC) meeting on December 8, had announced to hike the limits for UPI auto payments for specified transactions without additional factor authentication (AFA). According to the announcement, no one-time password (OTP) based authentication will be required for payments made up to Rs 1 lakh. The RBI said the new limit will be applicable for mutual fund subscriptions, insurance premium subscriptions and credit card repayments only.
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The RBI further added that the limit for payments made to hospitals and educational institutions through UPI apps has been increased to Rs 5 lakh from Rs 1 lakh per transaction. This move from the RBI allows individuals to do larger transactions using UPI, potentially facilitating smoother and substantial payments in crucial sectors.
Additionally, the limit for e-mandate transactions, also known as auto-debit, has been increased to Rs. 1 lakh per transaction. This enhancement allows individuals to conveniently purchase mutual funds through systematic investment plans (SIP) or make regular insurance premium payments. It can also be utilized for credit card bill payments.
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UPI, India’s pioneering mobile-based payment system, empowers users to execute instantaneous, round-the-clock payments via a Virtual Payment Address (VPA). It recorded 11.24 billion transactions in November 2023, reaching a transaction value of ₹17.40 trillion, according to data issued by the NPCI.
