RBI increases UPI transaction limit for education and healthcare to Rs 5 lakh

Earlier, the transaction limit was Rs 1 lakh.

The Reserve Bank of India (RBI) on December 8 increased the unified payments interface (UPI) transaction limit for education and healthcare facilities to Rs 5 lakh. “We propose to increase the UPI transaction limit for education and healthcare facilities to Rs 5 lakh,” RBI Governor Shaktikanta Das said in his MPC statement.

Earlier, the transaction limit was Rs 1 lakh.

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UPI numbers

UPI transactions in November 2023 clocked a fresh peak in value hitting Rs 17.4 trillion, up 1.4 percent compared to Rs 17.16 trillion in October 2023. At the same time, the number of transactions reduced by 1.5 percent to 11.24 billion versus a record high of 11.41 billion a month earlier.

The number of transactions were 10.56 billion in September 2023, with a value of Rs 15.8 trillion. According to data shared by the National Payments Corporation of India (NPCI), this was 54 percent higher in volume terms and 46 percent in value terms compared to the same month last year.

MPC decision

The Reserve Bank of India's monetary policy committee (MPC), as expected, kept the repo rate, at which banks borrow short-term funds from the central bank, at 6.5 percent, as prices remain higher than the central bank’s medium-term target of 4 percent.

The MPC has kept the repo rate unchanged at 6.5 percent in the past four monetary policy reviews, after raising the rate by 250 basis points since May 2022.