RBI Raises UPI Transaction Limit For Hospitals and Educational Institutions To Rs. 5 Lakh

The Reserve Bank Of India (RBI) has raised the UPI transaction limit for hospitals and educational institutions to Rs. 5 lakhs from Rs. 1 lakh.

It was announced by RBI Governor Shaktikanta Das at the bimonthly Monetary Policy Committee (MPC) meeting.

The limit for various categories of UPI transactions has been reviewed from time to time. It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction. This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes.

The RBI today announced plans to increase the cap on recurring payments made using e-mandates to Rs 1 lakh per transaction.

The beneficiaries include those who make regular payments for credit card repayments, insurance premium subscriptions, and mutual fund subscriptions.

“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,” RBI Governor Shaktikanta Das said in his monetary policy statement.

UPI (Unified Payments Interface) is an instant real-time payment system developed by the National Payments Corporation of India (NPCI).UPI facilitates P2P (Peer to Peer), P2M (Person to Merchant) and P2PM (for small merchants and unorganized retail sector) transactions.