In a decisive move to propel India towards a more cashless economy, the Reserve Bank of India (RBI) has announced substantial increases in the limits for Unified Payment Interface (UPI) transactions and e-mandates for Hospitals and Educational Institutions.
Governor Shaktikanta Das revealed that the daily UPI transaction limit has been elevated to ₹5 lakh, a noteworthy surge from the previous ₹1 lakh cap for Hospitals and Educational Institutions.
This heightened UPI limit is not restricted to popular payment apps like Paytm, Google Pay, and PhonePe but extends to similar services offered by banks and financial institutions. The move is anticipated to streamline higher-value transactions, particularly benefiting sectors crucial to daily life, such as hospitals and educational institutions.
The decision to augment the UPI transaction limit comes as a response to the exponential growth and widespread adoption of UPI in digital payments. November 2023 witnessed an impressive 11.24 billion UPI transactions, totaling ₹17.40 trillion, according to data from the National Payments Council of India (NPCI).
In tandem with the UPI adjustment, the RBI has raised the limit for e-mandates, or auto-debit, to ₹1 lakh per transaction. This adjustment holds significant promise for individuals engaged in systematic investment plans (SIPs), insurance premium payments, and hassle-free credit card transactions.
Governor Das underscored that the e-mandate modification extends beyond UPI, exemplifying the RBI’s commitment to nurturing a digital ecosystem where individuals can effortlessly manage their financial transactions and investments.
These regulatory changes aim to incentivize a broader section of the population to embrace digital payments, contributing to the RBI’s vision of a cashless society. The enhanced UPI transaction and e-mandate limits mark a decisive stride toward a more inclusive and technologically advanced financial landscape in India.
As India undergoes rapid digital transformation, these initiatives by the RBI lay the foundation for a future where secure and seamless digital transactions become the norm. The regulatory adjustments are poised to create new opportunities for individuals, businesses, and financial institutions to leverage the full potential of digital payments, fostering economic growth in the nation.
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