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Business: The Reserve Bank of India (RBI) has announced a significant increase in UPI Lite and UPI 123PAY transaction limits, aimed at enhancing access to digital payments. The limit per UPI Lite has been increased from Rs 500 to Rs 1,000, while the wallet limit has been increased from Rs 2,000 to Rs 5,000. In addition, the limit on UPI 123PAY has been doubled from Rs 5,000 to Rs 10,000.
Details of the increases
The RBI’s changes outlined in the development and regulatory framework announcement will ensure streamlined and efficient digital transactions. “To further encourage wider acceptance of UPI and make it more inclusive, it has been decided to increase the limit on a case-by-case basis,” the RBI governor said, emphasising the impact and highlighting the variable effect of UPI on the Indian economy.
What is UPI Lite?
UPI Lite enables users to make small payments without the need to enter a UPI PIN. The earlier limit of Rs 500 per transaction will now be Rs 1,000 and the wallet capacity will go up to Rs 5,000. Users need to pay for their UPI Lite wallet for PIN-free transactions.
UPI 123PAY
UPI 123PAY was launched in March 2022 to enable feature phone users to make digital transactions. With this update, users can now pay up to Rs 10,000 per transaction. UPI 123PAY supports multiple payment methods, including customised IVR numbers, missed calls, OEM-enabled payments, and voice-based technology.
These developments are aimed at widening and facilitating the use of digital payments across India, reflecting RBI’s commitment to innovation in financial services.
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