Per transaction limit for UPI Lite hiked to ₹1,000
What's the story
The Reserve Bank of India (RBI) has increased the per transaction limit for UPI Lite from ₹500 to ₹1,000. This is part of the central bank's plan to encourage wider adoption of digital payments. The RBI has also increased the wallet limit for UPI Lite from ₹2,000 to ₹5,000. These changes should make digital transactions more accessible and convenient for users.
Transaction ease
UPI Lite: A tool for pin-less transactions
UPI Lite is a feature that lets users make UPI payments without a transaction PIN. Earlier, such transactions were limited to ₹500 per transaction. However, with the latest changes introduced by RBI, users can now make PIN-less UPI payments up to ₹1,000 per transaction.
Wallet enhancement
Changes to UPI Lite wallet limit
To use the UPI Lite feature, users have to deposit money in their UPI Lite wallet. Before the RBI's latest announcement, the maximum amount that could be added was ₹2,000. Now, users can add up to ₹5,000 in their UPI Lite wallet for transactions without entering a PIN.
Additional update
UPI 123PAY transaction limit increased
Along with the changes for UPI Lite, the RBI has also increased the per transaction limit for UPI 123PAY from ₹5,000 to ₹10,000. The higher limit will give users more flexibility to make larger transactions through this platform.
Verification feature
RBI to introduce verification facility for RTGS and NEFT
RBI Governor Shaktikanta Das also announced plans to introduce a verification facility, for the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) systems. This feature will enable fund remitters to confirm the name of the receiver before executing a payment transaction, reducing potential errors and fraud. Currently, similar facilities are available for UPI and Immediate Payment Service (IMPS).