The Reserve Bank of India (RBI) has announced increased payment limits for payment interfaces (PI). Previously, UPI 123Pay and UPI Lite wallets were designated for small transactions only.
With the revised limits, users can now quickly pay thousands of rupees. Let’s take a closer look at how much the RBI has raised the UPI limits.
Typically, UPI Lite wallets are intended for small payments of up to Rs. 200. These wallets are ideal for making quick payments, such as at restaurants or grocery purchases.
Using UPI (Unified Payments Interface) wallets does not require a bank account or a PIN; users only need to preload their wallets in advance. Some wallets even allow payments without an internet connection.
With UPI Lite wallets, you won’t need to carry cash for every minor expense, making small purchases hassle-free and saving time in daily transactions.
The RBI’s recent announcement will simplify user payments by increasing the UPI Lite wallet and transaction limits. Specifically, the limit for UPI 123Pay has been raised from Rs. 5,000 to Rs. 10,000. Likewise, the UPI Lite wallet limit has increased from Rs. 2,000 to Rs. 5,000, and the transaction limit has grown from Rs. 100 to Rs. 500.
These new rules have already taken effect; however, banks, public sector banks, and service providers have until January 1, 2025, to implement the necessary updates to their payment applications. Additionally, Aadhaar OTP authentication has been made mandatory for onboarding in UPI 123Pay.
UPI has already provided numerous features to streamline payments. For instance, UPI Lite can be set to auto-top up; if your wallet balance is running low, it can automatically replenish.
In previous initiatives, the RBI also introduced the facility for depositing money at ATMs via UPI. Customers can now use CDM machines to deposit funds without needing an ATM card, along with options to withdraw and deposit money directly from their bank accounts.
Certain companies’ UPI wallets offer features such as fast transactions, offline payments, gifts, and 24/7 customer support.
RBI Governor Shaktikanta Das has encouraged individuals to explore and download the UPI wallet that fits their needs and increase their digital payment use. He emphasized that the new limits will enhance the ease of UPI transactions.