RBI Raises Transaction Limits for UPI 123Pay and UPI Lite
The Reserve Bank of India (RBI) has increased transaction limits for UPI 123Pay and UPI Lite. The new limits are:
- UPI 123Pay: Per-transaction limit raised from Rs.5,000 to Rs.10,000.
- UPI Lite Wallet: The wallet limit has been raised from Rs.2,000 to Rs.5,000, and the per-transaction limit has increased from Rs.500 to Rs.1,000.
Impact on Digital Payments
RBI Governor Shaktikanta Das highlighted that these enhancements aim to promote digital payments and improve financial inclusion in India. Industry experts view this as a significant step towards making digital transactions more accessible.
Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara Private Limited, noted that these changes cater to diverse user needs. Raghunandan Saraf, CEO of Saraf Furniture, emphasized that higher limits will benefit feature phone users, who can now make larger transactions through UPI 123Pay.
Benefits of UPI 123Pay and UPI Lite
UPI 123Pay is designed for India’s 400 million feature phone users, allowing them to make digital payments without a smartphone or internet. Users can set it up by dialing *99#, selecting their bank, entering debit card details, and creating a UPI PIN.
UPI Lite enables users to store money directly on their devices, simplifying payments and reducing reliance on bank servers for each transaction. This is expected to increase the number of low-value offline digital transactions.
New Security Measures
Additionally, a new Beneficiary Account Name Look-up Facility will be introduced for RTGS and NEFT transactions. This feature, already available for UPI and IMPS, allows users to verify recipient names before completing fund transfers, enhancing security and reducing errors.
Also read: RBI Monetary Policy Update: Key Points Simplified
Previous Announcements
During the monetary policy announcement on August 8, 2024, Governor Das also mentioned raising the limit for tax payments via UPI from Rs. 1 lakh to Rs. 5 lakh, further supporting the growth of digital payments in the country.
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