RBI raises UPI limit for hospitals, education to Rs. 5L
Reserve Bank of India (RBI) Governor Shaktikanta Das, announced two major updates related to the Unified Payments Interface (UPI), during the Monetary Policy Committee (MPC) meeting. The first change increases the UPI transaction limit for specific categories, like payments to educational institutions and hospitals. The second change raises the limit for e-Mandates for recurring payments in certain categories. The RBI MPC has also decided to maintain the repo rate at 6.5%.
UPI limit raised after periodic review
Das shared that the UPI transaction limit for payments made to hospitals and educational institutions would be raised from Rs. 1 lakh to Rs. 5 lakh per transaction. He explained, "This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes." This increase is part of a periodic review of limits for various categories of UPI transactions.
E-mandates limit enhanced for recurring payments
Furthermore, Das announced that the limit for e-Mandates for recurring payments in specified categories would be increased to Rs. 1 lakh. These categories include mutual fund subscriptions, credit card repayments, and insurance premium subscriptions. He stated, "This measure will further accelerate the usage of e-mandates." Currently, an additional factor of authentication (AFA) is required for recurring transactions exceeding Rs. 15,000.
Repo rate unchanged and GDP growth projection
RBI has agreed to keep the repo rate at 6.5%, the standing deposit facility (SDF) rate at 6.25%, and the marginal standing facility (MSF) rate and Bank Rate at 6.75%. The RBI has maintained the repo at the same level for the last four bi-monthly monetary policies. The last adjustment to it, was a rise in February, setting it at 6.5%. GDP growth is forecasted at 7% for FY23-24, while CPI inflation projection stands at 5.4% for FY24.
