The Reserve Bank of India (RBI) has provided major relief to UPI consumers. The central bank has increased the limit for making payments through UPI from Rs 1 lakh to Rs 5 lakh.
Addressing the media after the three-day bimonthly Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das said that UPI has become the most preferred mode of payment due to its convenient features. He said that the MPC has increased the limit for making payments through UPI to Rs 5 lakh. Currently, the payment limit for UPI is Rs 1 lakh.
Speaking to the press after the MPC meeting, Shaktikanta Das said that the Reserve Bank has reviewed the limits for various use cases and has increased them. These include categories such as capital markets, IPO subscriptions, loan recovery, insurance, medical, and educational services.
The RBI Governor said that the decision to increase the UPI payment limit from Rs 1 lakh to Rs 5 lakh per transaction was taken in the MPC meeting as direct and indirect tax payments are generally routine, regular, and of high value. He informed that necessary instructions in this regard will be issued separately.
Shaktikanta Das also mentioned that there is a proposal to publicly prepare data on digital lending apps for the investigation of unauthorized companies.
Notably, according to the RBI, the UPI user base has reached 42.4 crore. The proposal to introduce ‘Delegated Payments’ in UPI is expected to increase the reach and usage of digital payments across the country.
Payments through the Unified Payments Interface (UPI) reported a 45 percent yearly growth, according to data from the National Payment Corporation of India (NPCI). The value of transactions also saw a growth of over 35 percent, totaling Rs 20.64 trillion. This marks the third consecutive month when total transactions exceeded Rs 20 trillion.
In June 2024, the total UPI transaction value was Rs 20.07 trillion, while in May it was Rs 20.44 trillion. NPCI data also showed that the average daily transaction value through UPI in July 2024 was Rs 466 million, or about Rs 66,590 crore. Compared with June, the volume of UPI transactions grew by 3.95 percent in July, while the value of transactions increased by 2.84 percent.
(Inputs from ANI)