In his latest monetary policy statement, RBI Governor Shaktikanta Das brought joy to consumers by announcing an increase in the UPI limit for specific transactions. The limit for payments made to hospitals and educational institutions through UPI apps has been raised from Rs 1 lakh to Rs 5 lakh per transaction. This enhancement enables individuals to carry out larger transactions using UPI, thereby facilitating smoother and more substantial payments in crucial sectors.
Furthermore, as part of positive changes for consumers, the RBI Governor also announced an increase in the limit that triggers additional factor authentication for e-mandates in certain recurring online transactions. E-mandates involve instructions to the bank for automatic debits from an account for recurring payments.
Previously, an additional factor authentication (one OPT on email and another on mobile) was required for transactions beyond Rs 15,000 when initiating an e-mandate. However, this limit has now been raised to Rs 1 lakh for recurring online payments related to mutual fund SIPs (systematic investment plans), insurance premiums, and credit card repayments. The central bank believes that this adjustment will accelerate the utilization of e-mandates.