The Reserve Bank of India on Wednesday announced revised limits for popular digital payment solution Unified Payment Interface (UPI) from existing Rs 2,000 to Rs 5,000.
The move is aimed at encouraging the wider adoption of UPI and make it more convenient and inclusive, Das added.
Which UPI limit is meant for your transactions?
User with UPI123Pay
The decision to revise the UPI limit for UPI123 pay is useful for the people using non-smart phone/feature phones. For this segment, the RBI has increased the existing payment limit to Rs 10,000. This feature is essentially used by people, who wish to make digital payments via UPI but lack internet connectivity. The consumers need to use their 4-6 digit transaction pins to facilitate their payments through this feature.
UPI Lite wallet
Users can now make up to Rs 5,000 payment by using their UPI Lite wallets. Earlier, this limit was capped at Rs 2,000. UPI Lite is like a digital wallet on your mobile devices that one can use for small transactions.
This payment system works without using the core banking infrastructure. UPI Lite permits users to store a balance limit (previously Rs 2,000). This balance (now revised to Rs 5,000) can be used by customers for small value transactions. Earlier, the per transaction limit for this system was Rs 100 but today, the RBI revised this limit to Rs 500.
The balance, once exhausted, can be refilled in the wallet by using the linked bank account.
During the announcement, Das said that MPC has decided to keep the repo rate unchanged for the 10th consecutive time at 6.50 per cent. Repo rates are understood to be lending interest rates for commercial banks.
First Published: Oct 09 2024 | 12:40 PM IST
