Big change in UPI after MPC meeting, RBI Governor increase transaction limit

Governor Shaktikanta Das of the Reserve Bank of India declared on Wednesday that the UPI Lite Wallet's limit would increase from Rs 2,000 to Rs 5,000 and the UPI 123Pay per transaction limit from Rs 5,000 to Rs 10,000. After the MPC meeting, Das stated that expanding the features for customers utilising UPI Lite Wallet for minor transactions and enhancing the usefulness of digital payments for consumers are the primary goals of raising this restriction.

As per the Market experts, this announcement is made by RBI is to promote digital payments. Through this people can buy many other types of large payments can also be brought on UPI, which could not be done due to low payment limit.

According to Kotak Securities, it is a good move for the users, which should be welcomed. The main motive of this will be to increase the utility of digital payments or provide more convenience for those making small transactions with UPI Lite Wallet. This will accelerate the digital transaction process further. This will pave the way for small-value transactions to be done with ease by enhancing the limit for the UPI Lite Wallet from Rs 2 thousand to Rs 5 thousand. UPI Lite is designed in such a way that one can store money directly on their device, which helps during the time of making payments; it does not access the server of the bank every time. This will make day-to-day payments quite easy.

UPI-123Pay is an instant payment system allowing feature phone users to use the Unified Payment Interface 'in a safe and secure manner'. Through the system, feature phone users can initiate a transaction by calling IVR, through app functionality in feature phones, missed call-based approach and proximity sound-based system. The facility is now available in 12 languages.