RBI increases UPI transaction limit for education and healthcare to Rs 5 lakh

Reserve Bank of India (RBI) Governor Shaktikanta Das issued two significant announcements regarding the Unified Payments Interface (UPI) in India, one of them being specific and the other having broader implications for the entire online payments ecosystem.

The first announcement Das said is for “enhancing UPI transaction limit for specific categories” such as payments to hospitals and educational institutions from the current Rs 1 lakh to Rs 5 lakh.

“The limits for different categories of UPI transactions have been periodically reassessed. The current proposal involves increasing the UPI transaction limit for payments to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction. This adjustment aims to enable consumers to conduct UPI payments of larger amounts, particularly for educational and healthcare purposes,” he stated.

Additionally, in a more comprehensive announcement, Governor Das disclosed an increase in the limit for e-Mandates concerning recurring payments in specified categories.

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RBI Proposes Significant Increase in e-Mandate Limits for Recurring Payments

Consequently, the limits for e-Mandates facilitating payments of a recurring nature have been elevated to Rs 1 lakh for activities such as mutual fund subscriptions, insurance premium payments, and credit card repayments.

He stated, “E-mandates for making payments of a recurring nature have become popular among customers. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000. It is now proposed to enhance this limit to Rs 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. This measure will further accelerate the usage of e-mandates.”

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