Reetu | Nov 2, 2024 |
RBI improves Digital Payments this Diwali Season, Sets High UPI Transaction Goals
In a festive boon for digital payments, the Reserve Bank of India (RBI) has approved considerable increases in transaction limits for UPI 123Pay and UPI Lite, aimed at improving customer convenience during Deepavali.
The threshold for UPI 123Pay transactions has been raised from Rs.5,000 to Rs.10,000, while UPI Lite users will see their limit increase from Rs.2,000 to Rs.5,000, with individual transaction limits now set at Rs.1000.
UPI 123Pay: New limit set at Rs.10,000.
UPI Lite Wallet: Increased limit from Rs.5,000 to Rs.10,000 to facilitate low-value transactions.
RBI Governor Shaktikanta Das emphasized that these changes are intended to stimulate greater usage of digital payments and minimize dependency on cash, particularly during the festive season.
Experts predict that higher limits will increase high-value transactions, while upgraded UPI Lite will facilitate more low-value offline transactions, hence improving the overall user experience.
UPI 123Pay is designed for users of basic phones; this service allows UPI transactions without the usage of a smartphone or the internet. Users can make payments by dialling *99# and following the procedures.
UPI Lite Wallet is a simplified wallet service that allows for quick, low-value transactions, even offline, encouraging the usage of digital payments for routine purchases.
In addition to these reforms, the RBI has set an ambitious aim of increasing daily UPI transactions from the current 500 million to an unexpected 1 billion.
RBI Governor, speaking at the Annual International Banking Seminar in Washington, lauded UPI for transforming payment processes for millions of Indians. According to recent data, in September 2024, UPI processed an amazing 15.04 billion transactions worth Rs.20.64 lakh crore.
On UPI’s international expansion, he said UPI is currently available in seven countries, including Sri Lanka, the UAE, and Singapore, with ambitions to connect with other payment systems to enable cross-border transactions.
While focusing on UPI improvements, the RBI is taking a careful approach with the Central Bank Digital Currency (CBDC), popularly known as the e-rupee. Governor Das emphasized the importance of comprehensive testing to ensure security and dependability before to a nationwide rollout. The CBDC’s stepwise pilot testing began in late 2022, and it included both retail and wholesale transactions.
With these steps, the RBI hopes to greatly improve India’s digital payment landscape, assuring smooth financial transactions both domestically and internationally, especially during the festive season.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
