RBI on Friday in its Statement on Development and Regulatory policies announced that the limit for payments to hospitals and educational institutions from ₹1 lakh to ₹5 lakh per transaction. This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes, said RBI. “Separate instructions will be issued shortly”, it added.
The transaction limit for UPI has been capped at ₹1 lakh, for most of the payments except for a few categories. The transaction limits for UPI payments for Capital Markets (AMC, Broking, Mutual Funds, etc.), Collections (Credit card payments, Loan re-payments, EMI), Insurance, etc. are restricted to ₹2 lakh. In December 2021, the transaction limit for UPI payments for Retail Direct Scheme and IPO subscriptions was increased to ₹5 lakh.
The Unified Payments Interface or UPI an instant payment system developed in India, by the National Payments Corporation of India (NPCI) continues to grow in popularity. The UPI transactions reached 9.3 billion in June 2023, up from 151 million in January 2018, primarily driven by the growth in Person-to-Merchant (P2M) transactions, the report on ‘India Digital Payments Report for H1 2023’ said. The report said out of the total 51.91 billion UPI transactions conducted between January and June this year, 29.15 billion were P2M payments, accounting for approximately 56.1% of the total.
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