RBI announces UPI transaction limits, change in rules for e-mandates for recurring payments 5Lakh

The Reserve Bank of India (RBI), led by Governor Shaktikanta Das, recently announced updates to transaction rules for the Unified Payments Interface (UPI) and e-mandates for recurring payments. These changes include an increase in the UPI transaction limit for specific categories such as payments to hospitals and educational institutions, raising it from Rs 1 lakh to Rs 5 lakh per transaction. This enhancement aims to facilitate higher-value transactions for healthcare and education, reflecting the increasing demand for digital payments in these sectors.

RBI announces UPI transaction limits

Sachin Castelino, a top executive at In-Solutions Global Ltd, commented on the significance of this move by the RBI. He highlighted that the raised limit for UPI transactions to Rs 5 lakh specifically benefits the healthcare and education sectors, enabling smoother and larger financial operations. Castelino emphasized that this decision improves the efficiency of UPI transactions and aligns with the growing digital payment needs, especially in critical areas like healthcare and education.

RBI announces UPI transaction limits, change in rules for e-mandates for recurring payments 5Lakh

Change in Rules for E-Mandate Hospital & Education

Additionally, the RBI has updated the rules for e-mandates on recurring payments. The limit requiring additional factor authentication (AFA) for recurring transactions has been increased from Rs 15,000 to Rs 1 lakh. This adjustment applies to recurring payments such as mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. Governor Das stated that this change is expected to further boost the use of e-mandates for recurring payments.

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These announcements were part of the RBI’s Monetary Policy statement for December 2023, during which the Monetary Policy Committee (MPC) decided to maintain the key repo rate unchanged for the fifth consecutive instance. To know more click the link below

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