RBI increases UPI payment limit from Rs 1 lakh to Rs 5 lakh

The Reserve Bank of India (RBI) has delivered good news for UPI users. The central bank has raised the payment limit for UPI transactions from Rs 1 lakh to Rs 5 lakh.

Following the three-day bi-monthly Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das addressed the media, highlighting UPI's growing popularity as a convenient payment method. He announced that the MPC has increased the transaction limit for UPI to Rs 5 lakh, up from the current limit of Rs 1 lakh.

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Speaking to the press after the MPC meeting, Shaktikanta Das said that the Reserve Bank has reviewed the limits for various use cases and has increased them. These include categories such as capital markets, IPO subscriptions, loan recovery, insurance, medical, and educational services.

The RBI Governor said that the decision to increase the UPI payment limit from Rs 1 lakh to Rs 5 lakh per transaction was taken in the MPC meeting as direct and indirect tax payments are generally routine, regular, and of high value. He informed that necessary instructions in this regard would be issued separately.

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Notably, according to the RBI, the UPI user base has reached 42.4 crore. The proposal to introduce ‘Delegated Payments’ in UPI is expected to increase the reach and usage of digital payments across the country.

Payments through the Unified Payments Interface (UPI) reported a 45 percent yearly growth, according to data from the National Payment Corporation of India (NPCI). The value of transactions also saw a growth of over 35 percent, totaling Rs 20.64 trillion. This marks the third consecutive month when total transactions exceeded Rs 20 trillion.

Shaktikanta Das also mentioned that there is a proposal to publicly prepare data on digital lending apps for the investigation of unauthorized companies.

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