Economy

RBI Increases Transaction Limits For UPI 123Pay And UPI Lite

The Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday announced a hike in pre-transaction limits for UPI 123Pay and UPI Lite. The new guidelines will allow users to conduct UPI transactions of up to Rs 1,000 without entering a PIN, up from the previous Rs 500 limit.

Higher Limits for UPI Lite

The limit for UPI Lite balances has also been increased to Rs 5,000 from Rs 2,000. UPI Lite, available on apps like Paytm, BHIM, and Google Pay, was launched in September 2022 to support quick, low-value transactions. Many banks are already offering this facility.

Expert Reactions on the Move

Ramakrishnan Ramamurthy, Chief Delivery and Operations Officer at Worldline India, said the higher transaction limits will boost last-mile coverage and enhance convenience. Venkatraman Venkateswaran, CFO of Federal Bank, called the increase a “welcome move.”

The RBI also introduced Auto-Replenishment for UPI Lite wallets, allowing users to top up their balance automatically under an e-mandate framework. This step aims to further promote small-value digital payments.

UPI123Pay, launched in March 2022 by NPCI, allows feature phone users to make secure UPI payments in 12 languages.

Also Read: RBI Keeps Repo Rate Steady At 6.5%; Maintains GDP Growth Forecast

Ajaypal Choudhary

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