In a significant move, the Reserve Bank of India (RBI) has opted to maintain the key repo rate for the fifth consecutive time, as announced by RBI Governor Shaktikanta Das during the bi-monthly monetary policy unveiling. Alongside this decision, notable changes were introduced to the Unified Payments Interface (UPI) framework, particularly an increase in the UPI payment limit for hospitals and educational institutions. The limit has been raised from ₹1 lakh to ₹5 lakh per transaction, facilitating higher-value UPI payments for education and healthcare purposes.
The adjustment in UPI transaction limits is a strategic effort to accommodate the evolving needs of users, allowing them to make substantial payments seamlessly. The UPI system, known for its efficiency and accessibility, facilitates quick and continuous transactions through Virtual Payment Addresses (VPA).
In a parallel development, the RBI also announced a noteworthy enhancement in the limit under e-mandates for recurring payments. The limit has been raised from ₹15,000 to ₹1 lakh per transaction. This adjustment applies to recurring payments related to mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. Governor Das emphasized that this revision is aimed at streamlining the e-mandate process, ensuring that individuals making recurring payments in these categories can now transact up to ₹1 lakh per transaction without the need for additional authentication beyond the e-mandate framework.
This measure is anticipated to expedite the adoption of e-mandates, offering greater flexibility and convenience to individuals managing recurring financial obligations. The RBI’s decisions reflect a strategic balance between promoting digital financial transactions and ensuring prudent financial management in the current economic landscape.