RBI raises UPI limit to Rs 5 lakh per transaction for hospitals and educational institutions

UPI transaction limit increased: The RBI on Friday increased the UPI payment limits for hospitals and educational institutions to Rs. 5 lakh from Rs. 1 lakh per transaction. RBI Governor Shaktikanta Das announced this during the bi-monthly Monetary Policy Committee (MPC) meeting.

"The limit for various categories of UPI transactions has been reviewed from time to time. It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction. This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes," Shaktikanta Das said

UPI Limit enhancement in e-mandates

He further announced the enhancement of limits in e-mandates for recurring payments for specific categories. The limits have been raised to Rs 1 lakh for mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.

“E-mandates for making payments of a recurring nature have become popular among customers. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000. It is now proposed to enhance this limit to Rs 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. This measure will further accelerate the usage of e-mandates", Shaktikanta Das said

Repo Rate Unchanged

For the fifth time in a row, the Reserve Bank of India Monetary Policy Committee has kept the repo rate unchanged at 6.5% and the withdrawal of accommodation stance. The GDP forecast for FY24 is also raised to 7% while the CPI inflation is kept unchanged at 5.4%.

Also Read: RBI Monetary Policy December 2023: Repo rate left unchanged at 6.5% for the fifth time