News

Published: December 9, 2023
Updated: December 9, 2023

RBI Empowers Digital Future: UPI Transaction Limits Soar to INR 5 Lakhs for Hospitals and Educational Institutions

In a strategic move towards a cashless economy, the Reserve Bank of India (RBI) has made significant enhancements to Unified Payment Interface (UPI) transactions and e-mandates for Hospitals and Educational Institutions.

A Surge in Digital Transactions:

Governor Shaktikanta Das unveiled a substantial increase in the daily UPI transaction limit, soaring from ₹1 lakh to ₹5 lakhs. This surge, not confined to popular payment apps but extending to services provided by banks and financial institutions, is poised to streamline higher-value transactions, notably benefiting sectors integral to daily life.

Response to Digital Adoption:

This decision comes as a response to the exponential growth of UPI in digital payments. November 2023 recorded an impressive 11.24 billion UPI transactions, totaling ₹17.40 trillion, according to data from the National Payments Council of India (NPCI).

Elevating E-Mandates for Financial Flexibility:

In tandem with the UPI adjustment, the RBI has raised the limit for e-mandates, or auto- debit, to ₹1 lakh per transaction. This adjustment holds substantial promise for individuals engaged in systematic investment plans (SIPs), insurance premium payments, and hassle- free credit card transactions.

Beyond UPI: Nurturing a Digital Ecosystem:

Governor Das emphasized that the e-mandate modification extends beyond UPI, exemplifying the RBI's commitment to nurturing a digital ecosystem. This strategic move aims to encourage a broader section of the population to embrace digital payments, contributing to the RBI's vision of a cashless society.

A Stride Towards Inclusion and Technology:

The enhanced UPI transaction and e-mandate limits mark a decisive stride toward a more inclusive and technologically advanced financial landscape in India. As the nation undergoes rapid digital transformation, these initiatives lay the foundation for a future where secure and seamless digital transactions become the norm.

Seizing Opportunities for Growth:

These regulatory adjustments are poised to create new opportunities for individuals, businesses, and financial institutions to leverage the full potential of digital payments, fostering economic growth in the nation.

Paving the Way for a Digital Tomorrow:

Accordingly, the RBI's progressive measures set the stage for a financial landscape where secure and seamless digital transactions become the norm, paving the way for a digital tomorrow in India.