New Delhi: In what will come as a huge respite for people using digital transaction, RBI has hiked UPI payment limits for hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh per transaction.
Announcing the outcome of the Monetary Policy Committee, RBI Governor Shaktikanta Das said that 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 Rx 1 lakh to Rs 5 lakh per transaction. This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes.”
Shivaji Thapliyal, Head of Research and Lead Analyst, Yes Securities said that the central bank continues to take incremental steps to enhance the ubiquity of UPI as a platform for retail digital payments.
“Large value retail digital transactions have generally been in the domain of credit cards and hence, it remains to be seen to what extent allowance of higher UPI payments to hospitals and educational institutions would shift transaction value away from credit cards.Some of the key segments where large value retail digital transactions have generally taken place are travel bookings, including hotel and flight tickets and larger retail transactions, both in e-commerce and offline retail,” he added.
The RBI has also raised the limit for e-Mandates for recurring online transactions for specified categories
“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 ₹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,” announced RBI Guv Das.
