The Reserve Bank of India (RBI) has enhanced the transaction limit for the UPI Lite and UPI1234Pay platforms. RBI Governor Shaktikanta Das announced this on Wednesday during a statement after the RBI’s fourth monetary policy committee (MPC) meeting in FY2024-25.
“UPI has transformed India’s financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation. To further encourage wider adoption and make it more inclusive, it has been decided to (i) enhance the per-transaction limit in UPI123Pay from ₹5,000 to ₹10,000 and (ii) increase the UPI Lite wallet limit from ₹2,000 to ₹5,000 and per-transaction limit from ₹500 to ₹1,000,” Das told reporters.
In the August MPC meeting, RBI had enhanced the UPI transaction limit from Rs 1 lakh to Rs 5 lakh for paying taxes, encouraging more taxpayers to use the UPI platform.
UPI Transaction Limits
The Unified Payment Interface or UPI is an instant payment system 24x7 between parties. Banks usually sets the UPI transaction limit at Rs 1 lakh. However, the RBI on Wednesday enhanced the limit for UPI Lite and UPI123Pay.
Here are the new limits are for UPI Lite and UPI123Pay.
UPI Lite:
As per the announcement, “A limit of ₹500 per transaction and an overall limit of ₹2,000 per UPI Lite wallet is presently applicable, with the facility of auto-replenishment. To widen the scope of usage of this product, it has now been decided to increase the UPI Lite wallet limit to ₹5,000 and the per-transaction limit to ₹1,000. The framework for facilitating small value payments in offline digital mode, issued by the Reserve Bank, under which UPI Lite has been enabled, will be suitably amended.” It said the framework for offline UPI Lite payment will be amended to enable small digital transactions offline. Further, to widen the reach of the UPI facility to feature phone users, RBI has enhanced the transaction limit for UPI123Pay facility.
UPI123Pay:
“UPI123 was launched in March 2022 to enable feature-phone users to use UPI. This facility is now available in 12 languages. Currently, the per-transaction limit in UPI123Pay is capped at ₹5000. To widen the use-cases, it has been decided to enhance the per-transaction limit to ₹10,000. Necessary instructions will be issued to NPCI shortly,” the statement said.
