Move Aims to Boost Digital Transactions, Provide Relief for Higher Education and Healthcare Payments
RBI Raises UPI Payment Limits News: In a significant development for digital transactions, the Reserve Bank of India (RBI) has increased the UPI payment limits for hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction. The announcement was made by RBI Governor Shaktikanta Das following the Monetary Policy Committee meeting, where various categories of UPI transactions were under review.
Governor Das stated, "It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 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." The move is expected to provide a significant respite to individuals making substantial payments for education and healthcare services.
Shivaji Thapliyal, Head of Research and Lead Analyst at Yes Securities, commented on the central bank's decision, highlighting the ongoing efforts to expand the reach of UPI as a platform for retail digital payments. Thapliyal noted that while large-value retail digital transactions have traditionally been associated with credit cards, the impact on transaction values in segments like travel bookings and larger retail transactions remains to be seen.
Additionally, the RBI has raised the limit for e-Mandates for recurring online transactions in specific categories. Governor Das announced, "It is now proposed to enhance this limit to Rs 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." The move aims to promote the use of e-mandates and streamline recurring payments, making digital transactions more accessible and efficient for consumers.
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