UPI Payment: On December 8, 2023, the Reserve Bank of India (RBI) had announced to increase the transaction limit for UPI payment for hospitals and educational institutions to Rs 5 lakh. National Payment Corporation of India (NPCI) has asked banks and payment service providers (PSPs) to start this service by January 10, 2024.
RBI had announced in December
In the monetary policy meeting in December, RBI had announced to increase the limit for Unified Payment Interface (UPI) payment from Rs 1 lakh to Rs 5 lakh. This announcement was made by the Central Bank for payment to hospitals and educational institutions. RBI had then also proposed to increase the limit for UPI auto payment. According to the announcement, Additional Factor Authentication (AFA) is required when UPI auto-payment is made. At present this AFA is applicable when auto-payment of money more than Rs 15,000 will be made.
The rule is to be implemented from January 10
According to the NPCI circular dated December 19, 2023, UPI has become a preferred payment method. With the emergence of RBI as a developmental and regulatory policy, there is a need to increase the per transaction limit in UPI for different categories as per RBI’s December 81 statement on developmental and regulatory policies. The per transaction value limit in UPI has now been increased to Rs 5 lakh for merchants under the categories related to hospitals and educational services. This increased limit will be applicable only on verified merchants. All members were asked to implement it by January 10, 2024.
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