The Reserve Bank of India (RBI) has announced new limits for Unified Payment Interface (UPI) transactions, increasing the per-transaction limit for popular digital payment solutions. As part of this revision, the UPI Lite wallet limit has been raised from Rs 2,000 to Rs 5,000, and the per-transaction limit for UPI123Pay has been increased from Rs 5,000 to Rs 10,000.
RBI Governor Shaktikanta Das made these announcements during the Monetary Policy Committee (MPC) meeting, where he also revealed that the repo rate would remain unchanged at 6.50%.
UPI123Pay: A Game-Changer for Feature Phone Users
The decision to revise the UPI limit for UPI123Pay is particularly beneficial for users of feature phones or those without internet access. UPI123Pay now allows payments of up to Rs 10,000 per transaction, making digital payments more accessible to this segment. Users can facilitate transactions by entering a 4-6 digit PIN.
UPI Lite Wallet: Enhanced Limit for Small Transactions
The UPI Lite wallet, a popular choice for small transactions, has seen its wallet limit raised to Rs 5,000, up from Rs 2,000. The per-transaction limit has also been increased to Rs 500, providing greater convenience for users making low-value payments. UPI Lite functions as a digital wallet on mobile devices, and the balance can be easily topped up from a linked bank account.
A Step Towards Greater Adoption of Digital Payments
The enhanced limits aim to promote wider adoption of UPI and make it more convenient for a broader range of users. By increasing the transaction limits for both UPI123Pay and UPI Lite, the RBI hopes to further ease digital payments across various demographics, including those with limited access to smartphones and internet services.
In addition to these UPI updates, the MPC’s decision to keep the repo rate unchanged for the 10th consecutive time highlights the RBI’s focus on maintaining stability in the lending rates for commercial banks.
These changes are set to make digital transactions even more convenient, secure, and inclusive for all users.
