RBI Announces New UPI Transaction Limits and Changes 2023

The Reserve Bank of India (RBI) has recently announced new UPI transaction limits and changes in rules for e-mandates for recurring payments. These changes are aimed at enhancing the security and convenience of digital transactions in India.

What New UPI Transaction Limits

Under the new guidelines, the RBI has increased the transaction limits for UPI (Unified Payments Interface) transactions. Previously, the limit for UPI transactions was set at Rs. 1 lakh per transaction. However, the new regulations have increased the limit to Rs. 2 lakh per transaction. This increase in transaction limits is expected to facilitate larger value transactions through the UPI platform.

The RBI has also introduced a separate limit for small merchants and individuals. For small merchants and individuals, the transaction limit has been set at Rs. 5,000 per transaction. This move is aimed at encouraging the adoption of digital payments among small businesses and individuals.

It is important to note that these new transaction limits apply only to UPI transactions and not to other modes of digital payments such as credit cards, debit cards, or net banking.

Changes in Rules for E-Mandates for Recurring Payments

Along with the new UPI transaction limits, the RBI has also made changes to the rules for e-mandates for recurring payments. E-mandates are used for recurring payments such as utility bill payments, insurance premiums, and SIP (Systematic Investment Plan) payments.

Under the new rules, the validity of an e-mandate will be limited to 24 months. This means that customers will have to renew their e-mandates every 24 months to continue making recurring payments through the UPI platform. This change is aimed at ensuring that customers have control over their recurring payments and can review and update their mandates periodically.

In addition, the RBI has introduced an additional authentication factor for e-mandates above Rs. 5,000. This means that for e-mandates above Rs. 5,000, customers will have to provide an additional authentication such as a one-time password (OTP) or biometric authentication. This additional layer of security is expected to reduce the risk of unauthorized transactions and enhance the safety of digital payments.

Impact on Digital Payments

The new UPI transaction limits and changes in rules for e-mandates are expected to have a significant impact on digital payments in India. The increase in UPI transaction limits will enable users to make larger value transactions through the UPI platform, making it more convenient for businesses and individuals.

Also Read : UPI: Exploring the Proposed 4-Hour Delay for UPI Transactions Above Rs 2,000 to Stop UPI Fraud

Furthermore, the changes in rules for e-mandates will enhance the security of recurring payments and provide customers with greater control over their transactions. By introducing an additional authentication factor for e-mandates above Rs. 5,000, the RBI is taking proactive measures to prevent fraud and protect customer interests.

Overall, these regulatory changes by the RBI are in line with the government’s vision of promoting a cashless economy and encouraging the adoption of digital payments. With the increased transaction limits and enhanced security measures, the UPI platform is expected to witness a further surge in popularity and usage in the coming months.

In conclusion, the RBI’s announcement of new UPI transaction limits and changes in rules for e-mandates is a positive step towards making digital transactions more secure and convenient. These changes are expected to boost the adoption of digital payments and contribute to the growth of the digital economy in India.

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