New Delhi: The Reserve Bank of India (RBI) has announced an increase in the UPI payment limits for hospitals and educational institutions. The current limit of Rs 1 lakh will be raised to Rs 5 lakh per transaction, according to RBI Governor Shaktikanta Das during the December bi-monthly monetary policy announcement.
Governor Das announced UPI transaction limits are periodically reviewed, and put forth the proposal to enhance the transaction limit for payments to hospitals and educational institutions. This adjustment aims to facilitate higher-value UPI transactions, particularly for expenses related to education and healthcare.
Furthermore, the cap for e-mandates for recurring payments has also been set to Rs 1 lakh from the current limit of Rs 15,000 for recurring payments involving mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.
Governor Das noted the increasing popularity of e-mandates for recurring transactions and expects this measure to further accelerate their usage.
In an additional announcement, the RBI disclosed plans to establish a “Fintech Repository” to better understand developments in the fintech ecosystem and provide support to the sector. The repository, implemented by the Reserve Bank Innovation Hub, is slated to be launched in April 2024 or earlier, encouraging fintechs to voluntarily contribute relevant information.
Governor Das also addressed the growing collaboration between financial entities, including banks and NBFCs, with fintechs in India. As part of enhancing data security, integrity, and privacy, the RBI is working on establishing a cloud facility for the financial sector to be rolled out over the medium term in a calibrated fashion.
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