The(RBI) has proposed to enhance the limit for UPI payments to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction.
The announcement was made by RBI Governor Shaktikanta Das during the bi-monthly Monetary Policy Committee meeting.
“This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes,” the governor said.
<figure class="image embed" contenteditable="false" data-id="532520" data-url="https://images.yourstory.com/cs/2/f49f80307d7911eaa66f3b309d9a28f5/Imagec0md-1632036527125.jpg" data-alt="Reserve Bank of India, RBI" data-caption="
E-mandates for recurring payments
The RBI has also proposed to enhance the limit for e-mandates for making payments of a recurring nature for specified categories, including mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.
Currently, users are required to go through an additional factor of authentication for recurring transactions exceeding Rs 15,000.
The RBI has proposed to enhance this limit to Rs 1 lakh per transaction for the above mentioned categories.
“The number of e-mandates registered currently stands at 8.5 crore, processing nearly Rs 2,800 crore of transactions per month. The system has stabilised, but in categories such as subscription to mutual funds, payment of insurance premium and credit card bill payments, where the transaction sizes are more than Rs 15,000, a need to enhance the limit has been expressed as adoption has been lagging,” read the RBI’s document on Developmental and Regulatory Policies, issued on Friday.
The governor said e-mandates for making payments of a recurring nature have become popular among customers, and the measure will accelerate the usage of e-mandates.
Separate instructions in this regard will be issued shortly.
In December 2021, the regulator had increased the transaction limit for UPI payments for the Retail Direct Scheme and IPO subscriptions to Rs 5 lakh.
Edited by Swetha Kannan