UPI users can transfer upto Rs 5 lakhs to hospitals, educational institutes soon, says RBI

UPI payment limit to hospitals and educational institutions is presently Rs 1 lakh

Team Udayavani, Dec 8, 2023, 11:49 AM IST

Representative image

Mumbai: Making payments at educational institutions and hospitals will be easier as UPI users will be able to transfer funds up to Rs 5 lakhs to these establishments soon.

In a major decision, the RBI on Friday announced to raise the UPI payment limit to hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh presently and hiked the cap for e-mandates for recurring payments to Rs 1 lakh from Rs 15,000 currently.

With this consumers gain the ability to conduct higher-value transactions, particularly beneficial for education and healthcare expenses.

Unveiling the December bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das said the limit for various categories of Unified Payments Interface (UPI) transactions has been reviewed from time to time. ”It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction,” he said.

The enhanced limit will help consumers make UPI payments of higher amounts for education and healthcare purposes. He further said that e-mandates for making payments of a recurring nature have become popular among customers.

Under the e-mandate framework, an additional factor of authentication (AFA) is required for recurring transactions exceeding Rs 15,000 currently.

”It is now proposed to enhance this limit to Rs 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments,” the governor said.

The measure, he said, will further accelerate the usage of e-mandates. In another development, the RBI also announced to set up a ”Fintech Repository” for a better understanding of developments in the fintech ecosystem and support the sector.

”This will be operationalised by the Reserve Bank Innovation Hub in April 2024 or earlier. FinTechs would be encouraged to provide relevant information voluntarily to this Repository,” Das said.

Financial entities like banks and NBFCs in India are increasingly partnering with fintechs. Das also said that the central bank is working on the establishment of a cloud facility for the financial sector in India.

Banks and financial entities are maintaining an ever-increasing volume of data.

Many of them are utilising cloud facilities for this purpose, he added.

”The Reserve Bank is working on establishing a cloud facility for the financial sector in India for this purpose,” he said, adding such a facility would enhance data security, integrity, and privacy. It will also facilitate better scalability and business continuity.

Das said the cloud facility is intended to be rolled out in a calibrated fashion over the medium term.

(With PTI inputs)

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

No need to act like a hero: Rohit warns Sarfaraz for not wearing helmet at close-in position

Defeat BJP, which is against the Constitution, social justice and equality: Siddaramaiah

INDIA ‘janbandhan’ locked and loaded: Congress after Akhilesh joins Nyay Yatra

Karnataka Congress MLA Raja Venkatappa Naik passes away

INLD Haryana president Nafe Singh Rathee, party worker shot dead in Jhajjar

BJP to win big but there is no Modi magic: Subramanian Swamy

How Jurel cracked Test code: 4 hrs of facing spin at Talegaon, 140 overs of batting per day

Related Articles More

Absconding for 22 years, SIMI operative Hanif Sheikh arrested by Delhi Police

Don’t test our patience, CM tells Jarange; says conspiracy will be exposed soon

Resolve to give Modi govt third term with more than 400 LS seats: Shah to BJP workers

INDIA ‘janbandhan’ locked and loaded: Congress after Akhilesh joins Nyay Yatra

INLD Haryana president Nafe Singh Rathee, party worker shot dead in Jhajjar

MUST WATCH

Sasihitlu Beach

How diabetes cause problems in kidney

christmas crib

KFD The Monkey Fever/Kyasanur Forest Disease

Abu Dhabi’s 1st Hindu Temple | UAE Temple


Latest Additions

No need to act like a hero: Rohit warns Sarfaraz for not wearing helmet at close-in position

Absconding for 22 years, SIMI operative Hanif Sheikh arrested by Delhi Police

Defeat BJP, which is against the Constitution, social justice and equality: Siddaramaiah

Don’t test our patience, CM tells Jarange; says conspiracy will be exposed soon

They’re supporting me from up above: Bashir dedicates maiden fifer to his late grandfathers

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.