“RBI Unveils Major UPI and E-Mandate Limit Boosts in Monetary Policy Update”
In a bid to fortify digital payment systems and accommodate evolving financial needs, the Reserve Bank of India (RBI) introduced substantial revisions to Unified Payments Interface (UPI) transaction limits and e-mandates, marking a pivotal moment in India’s financial landscape.
In a bid to fortify digital payment systems and accommodate evolving financial needs, the Reserve Bank of India (RBI) introduced substantial revisions to Unified Payments Interface (UPI) transaction limits and e-mandates, marking a pivotal moment in India’s financial landscape.
Key UPI Transaction Limit Upgrades
Governor Shaktikanta Das, while presenting the bi-monthly monetary policy, unveiled a momentous decision to elevate the UPI payment ceiling for transactions involving hospitals and educational institutions. The limit, previously set at ₹1 lakh, has been substantially increased to ₹5 lakh per transaction. This enhancement aims to empower individuals to conduct higher-value transactions, specifically catering to educational and healthcare expenses.
The UPI platform, renowned for its agility and accessibility, allows users to execute instantaneous payments using Virtual Payment Addresses (VPA) round the clock, contributing significantly to the country’s digital payments ecosystem.
E-Mandate Adjustment for Recurring Payments
Additionally, the RBI announced a notable augmentation in the limit for e-mandates pertaining to recurring payments. The limit, formerly restricted to ₹15,000 per transaction, has been significantly elevated to ₹1 lakh. Governor Das highlighted that this adjustment applies to recurring payments for mutual fund subscriptions, insurance premiums, and credit card repayments.
Under the current e-mandate framework, transactions exceeding ₹15,000 necessitate an additional factor of authentication (AFA). With the revised limit, individuals engaging in recurring payments for mutual funds, insurance premiums, and credit card dues will experience the ease of conducting larger transactions seamlessly.
Potential Implications and Benefits
The decision to amplify the UPI transaction and e-mandate limits underscores the RBI’s commitment to fostering a dynamic and inclusive digital payment ecosystem. By facilitating higher-value transactions for crucial sectors like education and healthcare, the increased UPI limit is poised to empower individuals in managing substantial expenses effortlessly.
Moreover, the augmented e-mandate limit not only streamlines recurring payment processes but also aims to bolster the adoption of e-mandates, further promoting digital financial transactions across diverse sectors.
Repo Rate Unchanged
While these monumental changes in digital transactions took center stage, the Monetary Policy Committee (MPC) maintained the repo rate, a crucial benchmark, at its existing level for the fifth consecutive time. This decision aligns with the RBI’s endeavor to balance inflation concerns with the imperative of stimulating economic growth.
As India continues its stride towards a digital financial future, these adjustments in transaction limits reflect the RBI’s commitment to adapting to evolving financial landscapes, fostering innovation, and ensuring financial inclusivity for all.
Sources By Agencies
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