New UPI transaction limits announced: In good news for UPI users, RBI governor Shaktikanta Das on Wednesday announced that the UPI transaction limits will be enhanced. “UPI has transformed India’s financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation,” he said.
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Shaktikanta Das made this announcement as part of his monetary policy statement. The RBI governor said:
To further encourage wider adoption of UPI and make it more inclusive, it has been decided:
- First, to enhance the per transaction limit in UPI 123Pay from Rs 5,000 to Rs 10,000
- It has also been decided to 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
Shaktikanta Das also said, “At present, UPI and Immediate Payment Service (IMPS) provide a facility for the remitter of funds to verify the name of the receiver (beneficiary) before executing a payment transaction. It is now proposed to introduce such a facility for the Real Time Gross Settlement System (RTGS) and the National Electronic Funds Transfer (NEFT) system.”
“This facility will enable the remitter to verify the name of the account holder before effecting funds transfer to him/her through RTGS or NEFT. This will also reduce the possibility of wrong credits and frauds,” he said.
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What is UPI Lite Wallet & UPI 123PAY?
UPI Lite is a feature that enables users to make UPI transactions without entering their UPI PIN for amounts up to Rs 500 per transaction. In the future, this limit will be increased to Rs 1000 per transaction, allowing for even more convenient and seamless payments.
To take advantage of UPI Lite, users must first add funds to their UPI Lite wallet. Previously, the maximum amount that could be added to the wallet was Rs 2,000. However, this limit has now been raised to Rs 5,000, giving users more flexibility in managing their UPI Lite transactions.
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UPI 123PAY is another innovative payment solution designed specifically for feature phone users. This service offers four distinct methods for making UPI payments:
1. Pre-defined IVR number
2. Missed call pay
3. OEM-enabled payments
4. Sound-based technology
By providing multiple options, UPI 123PAY ensures that feature phone users can easily and securely make UPI transactions, even without access to a smartphone or internet connection.
