RBI MPC Meeting: UPI transaction limit for hospitals, educational institutions payments raised to ₹5 lakh
RBI Monetary Policy (MPC) Meet: Reserve Bank of India Governor Shaktikanta Das made two announcements related to the Unified Payments Interface (UPI) in India, one specific and one with broader ramifications for the online payments ecosystem. The first announcement Das said is for "enhancing UPI transaction limit for specific categories" such as payments to hospitals and educational institutions from the current ₹1 lakh to ₹5 lakh. "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 ₹1 lakh to ₹5 lakh per transaction. This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes," he said. Further, in the broader announcement, Das announced the enhancement of the limit in e-Mandates for recurring payments for specified categories.
Thus limits for e-Mandates for making payments of a recurring nature have been raised to ₹1 lakh for mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. He stated, “E-mandates for making payments of a recurring nature have become popular among customers. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding ₹15,000.
It is now proposed to enhance this limit to ₹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." The Reserve Bank of India's MPC has kept repo rates unchanged at 6.5 percent, RBI Governor Shaktikanta Das announced on December 8. “The RBI
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