UPI transaction limit for educational institutions, hospitals raised up to Rs 5 Lakh ; RBI

By: Pune Pulse

December 8, 2023

Pune: Shaktikanta Das, Governor of the Reserve Bank of India (RBI) made two announcements, first regarding the Unified Payments Interface (UPI) & second was regarding e-mandates.

As per further information, Das announced first that the Rs 1 lakh UPI transaction limit will be increased to Rs 5 lakh for payments to hospitals and educational institutions.

Das stated that the limit on different UPI transaction categories has been periodically reviewed. A proposal has been made to increase the UPI transaction limit from Rs 1 lakh to Rs 5 lakh for payments made to hospitals and educational institutions. This will enable customers to make larger UPI payments for healthcare and education.

Additionally, Das stated in the second announcement that the e-mandate limit for recurring payments for specified categories has been increased.

As a result, the maximum amount that can be paid with an e-mandate for recurring payments has been increased to Rs 1 lakh for credit card repayments, mutual fund subscriptions, and insurance premium payments.

Das stated that customers are increasingly using e-mandates to make recurring payments. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000. Now, it has been proposed to enhance the limit up to Rs 1 lakh per transaction for recurring payments of insurance premium subscriptions, credit card repayments, and mutual fund subscriptions. With this action, the use of e-mandates will increase even more quickly.

Shreyas Vange