RBI increased UPI payment limit from Rs 1 lakh to Rs 5 lakh
Chennai: To encourage the use of UPI for medical and educational services, it is proposed to increase the limit for payments to hospitals and educational institutions from Rs. 1 lakh to Rs. 5 lakh per transaction.
However, the Reserve Bank of India Governor said that separate instructions will be issued soon.
Unified Payment Interface (UPI), electronic mandate, setting up cloud facilities, increasing payment limits for the financial sector and fintech repository were some of the key announcements made by Reserve Bank of India Governor Shaktikanta Das on Friday.
Das took these measures after Friday announced the Monetary Policy Committee’s decision to keep the repo rate at 6.5 per cent and forecast gross domestic product (GDP) growth rate of 7 per cent and inflation rate of 5.4 per cent for fiscal year 2024. Announced.
“To encourage the use of UPI for medical and educational services, it is proposed to increase the payment limit to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction. Separate instructions will be issued shortly,” he said.
According to Das, UPI is becoming popular and the transaction limit has been set at Rs 1 lakh except for categories like capital markets (AMC, broking, mutual funds and others), collections (credit card payments, loan payments, EMIs), insurance and others. Has been. Where the transaction limit was set at Rs 2 lakh.
In December 2021, the transaction limit for UPI payments for the Retail Direct Scheme and IPO subscription was increased to Rs 5 lakh.
Regarding electronic mandates, Das also said that RBI has decided to exempt additional factor of authentication (AFA) for transactions up to Rs 1 lakh for the following categories, such as mutual fund subscriptions, insurance premiums Payment and payment of. Credit card bill.
Other existing requirements such as pre- and post-transaction notifications, opt-out facility for users, etc., will continue to apply to these transactions.
The RBI Governor said that the number of electronic mandates currently registered is 8.5 crore, resulting in transactions of about Rs 2,800 crore per month.
To ensure security, integrity and privacy of financial sector data, RBI has decided to set up a cloud facility for this sector and it will be operated by Indian Financial Technology and Allied Services (IFTAS), a wholly owned subsidiary of RBI. Will be done.
“Eventually, the cloud facility will be transferred to a separate entity owned by financial sector participants. This cloud facility is intended to be rolled out in a calibrated manner in the medium term,” Das said.
He said banks and financial institutions are maintaining ever-increasing amounts of data using various public and private cloud facilities.
Similarly, for a better understanding of the developments in the fintech ecosystem with the aim of giving proper support to the sector, Das said that to get the necessary information about fintechs, including their activities, products, technology stack, financial information, There is a proposal to set up a repository. And others.
Fintechs will be encouraged to voluntarily provide relevant information to the repository which will assist in designing appropriate policy approaches. The repository will be operated by the Reserve Bank Innovation Hub on or before April 2024.
