RBI raises UPI Payment limits to Rs. 5 Lakhs per Day to benefit Hospitals and Educational Institutions

The Reserve Bank of India (RBI) has approved significant increases in the limitations for Unified Payment Interface (UPI) transactions and e-mandates for Hospitals and Educational Institutions, marking a crucial step towards pushing India towards a more cashless economy.

The daily UPI transaction limit for hospitals and educational institutions has been increased to Rs.5 lakh, according to Governor Shaktikanta Das. This is a significant increase from the previous ceiling of Rs.1 lakh.

This increased UPI limit applies to comparable services provided by banks and financial institutions as well as well-known payment apps like Paytm, Google Pay, and PhonePe. It is expected that this change will simplify higher-value transactions, which will be especially advantageous to industries that are essential to daily life, including healthcare and education.

The decision to increase the UPI transaction limit was made in response to the digital payments industry’s rapid expansion and broad use of UPI. Rs.17.40 trillion worth of UPI transactions were made in November 2023, an astounding 11.24 billion, according to data from the National Payments Council of India (NPCI).

The RBI increased the maximum amount for e-mandates, or auto-debit, to Rs.1 lakh per transaction in conjunction with the UPI modification. This change offers a lot of potential benefits for people who use credit card transactions without trouble, insurance premium payments, and systematic investment plans (SIPs).

Governor Das emphasised that the RBI’s commitment to fostering a digital ecosystem in which people can easily manage their financial transactions and investments is demonstrated by the e-mandate change, which goes beyond UPI.

With these regulation adjustments, the RBI hopes to move closer to its goal of a cashless society by encouraging a larger segment of the populace to adopt digital payments. A significant step towards a more technologically sophisticated and inclusive financial landscape in India has been made with the introduction of improved UPI transaction and e-mandate limitations.

These efforts by the RBI set the stage for a time when safe and easy digital transactions will be the norm as India rapidly adopts digital technology. The country’s economy will flourish as a result of the legal changes, which will open up new possibilities for people, companies, and financial institutions to fully use digital payments.