RBI MPC meet: Transaction limit of UPI123 Pay increased to Rs 10,000, UPI Lite Wallet limit hiked to Rs 5,000

UPI network, operated by the National Payments Corporation of India, processed over 500 million daily transactions in September 2024, according to data released by NPCI on October 1.

The Reserve Bank of India (RBI) on October 9 increased the transaction limit of UPI123 Pay to Rs 10,000 from Rs 5,000 earlier. “To further encourage wider adoption of UPI and make it more inclusive, it has been decided to enhance the per-transaction limit in UPI123Pay from Rs 5,000 to Rs 10,000,” RBI Governor Das said in his monetary policy committee speech.

The central bank also increased the UPI Lite wallet limit from Rs 2,000 to Rs 5,000 and per-transaction limit for the same from Rs 500 to Rs 1,000.

RBI also introduced a beneficiary verification system in the Real Time Gross Settlement System (RTGS) and the National Electronic Funds Transfer (NEFT) systems. This was earlier only available in UPI and Immediate Payment Service (IMPS) services. “This facility will enable the remitter to verify the name of the account holder before effecting funds transfer to him/her through RTGS or NEFT. This will also reduce the possibility of wrong credits and frauds,” Das said.

The RBI MPC has maintained the status quo on repo rates during the October policy meeting, opting to hold steady despite the US Federal Reserve's recent rate cut of 50 basis points. The repo rate stays at 6.5 percent. RBI has changed the stance to 'neutral' from 'withdrawal of accommodation'.

UPI network, operated by the National Payments Corporation of India, processed over 500 million daily transactions in September 2024, according to data released by NPCI on October 1.

By value, UPI transactions stayed above the Rs 20 lakh crore mark for the fifth consecutive month. The average daily transaction was at Rs 68,800 crore against Rs 66,475 crore in August. Transactions grew 31 percent to Rs 20.64 lakh crore compared from the year-ago period, continuing the double-digit growth trend.