RBI Increases UPI Transaction Limits: Impact on UPI Lite Wallet and 123Pay Users

The Reserve Bank of India (RBI) has recently announced an increase in transaction limits for UPI Lite Wallet and UPI 123Pay. This move aims to enhance digital payment options and further promote a cashless economy in India. The changes were revealed by RBI Governor Shaktikanta Das during a monetary policy briefing, where he emphasized the significant role of the Unified Payments Interface (UPI) in revolutionizing the financial landscape, particularly in increasing accessibility for users.

New Transaction Limits

The updated transaction limits for UPI services are as follows:

1. UPI 123Pay: The transaction limit for UPI 123Pay has been raised from ₹5,000 to ₹10,000, providing users with greater flexibility in conducting larger payments.

2. UPI Lite Wallet: The maximum balance for UPI Lite Wallet has increased from ₹2,000 to ₹5,000, and the per transaction limit has also risen from ₹500 to ₹1,000. This will streamline smaller, everyday transactions, making UPI Lite more convenient for users.

These changes are expected to drive greater adoption of UPI services, ensuring a wider user base, particularly among those without access to smartphones or internet connections.

Enhancing Security and Reducing Errors

In addition to the new transaction limits, Das also proposed a feature aimed at improving security and reducing errors during payment transfers. The feature will allow remitters to verify the name of the account holder before completing a transaction through Real Time Gross Settlement (RTGS) or National Electronic Funds Transfer (NEFT). This will help mitigate fraud and ensure funds are sent to the correct recipient.

What Are UPI Lite Wallet and UPI 123Pay?

UPI Lite Wallet allows users to make small payments without entering a UPI PIN, making transactions quick and efficient. With the increased transaction limit, users can now make payments of up to ₹1,000 without hassle.

UPI 123Pay is designed for feature phone users, offering four convenient methods to make payments: an Interactive Voice Response (IVR) system, a missed call payment option, OEM-enabled payment solutions, and sound-based technology. This makes digital payments more accessible to people without smartphones or internet connectivity, promoting inclusivity. The RBI’s new transaction limits reflect a strong push toward making digital payments more efficient, secure, and accessible for all.