Gone are the days when you used Unified Payments Interface (UPI) payments for only small-value transactions. To enhance the scope of UPI payments, the Reserve Bank of India (RBI) on December 8, 2023, increased the transaction limit for UPI payments to hospitals and educational institutions to Rs 5 lakh. Earlier the limit was set at Rs 1 lakh per transaction.
While announcing the decisions of the Monetary Policy Committee (MPC), RBI Governor Shaktikanta Das said, “The limit for various categories of UPI transactions has been reviewed from time to time. It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction.”
This move will help consumers to make UPI payments of higher amounts for education and healthcare purposes, Das said.
Another announcement regarding UPI which was made was that, no additional factor of authentication (AFA) will be required for transactions of Rs 1 lakh for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments.
Das said, “e-Mandates for making payments of recurring nature have become popular among customers. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000. It is now proposed to enhance this limit to Rs 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments. This measure will further accelerate the usage of e-mandates.”