The Reserve Bank of India increased on Friday the limit on unified payments interface transactions to Rs 5 lakh for specific categories.
The cap has been increased from Rs 1 lakh to Rs 5 lakh for payments made to hospitals and educational institutions, Governor Shaktikanta Das said in his monetary policy statement.
The enhanced transaction limit of Rs 2 lakh was only available to capital markets, collections and others earlier. In December 2021, the central bank also increased the UPI transaction limit for retail direct scheme and IPO subscriptions to Rs 5 lakh.
In the monetary policy statement, the regulator also proposed enhanced e-mandates for recurring online transactions and additional factor authentication.
The central bank proposed to raise the current limit of Rs 15,000 to Rs 1 lakh for mutual fund and insurance premium subscriptions, and credit card repayments.
This framework, for processing of e-mandates for recurring transactions, was initially introduced in 2019. The idea behind this was to balance the safety and security of digital transactions, according to the RBI.
At present, the number of e-mandates registered stands at 8.5 crore and around Rs 2,800-crore transactions are being processed every month, it said in its statement on developmental and regulatory policies.
Since the adoption has been lagging in certain segments, the RBI has enhanced this limit. However, the other requirements like pre- and post-transaction notifications, opt-out facility for users and others will continue to apply to all such transactions.
RECOMMENDED FOR YOU
POPULAR