look news india
Increase in UPI Pay: The Reserve Bank of India (RBI) has announced an increase in transaction limits for UPI 123Pay and UPI Lite. The per transaction limit for UPI 123Pay has been increased from ₹5,000 to ₹10,000, while the UPI Lite wallet limit has been increased from ₹2,000 to ₹5,000.
RBI MPC on UPI
UPI 1 2 3 Per transaction payment limit increased from ₹ 5000 to ₹ 10000
UPI Lite Wallet amount increased from ₹ 2000 to ₹ 5000
UPI Lite per transaction limit increased from ₹100 to ₹500
Implementation Timeline
Although the updated transaction limits are effective immediately, NPCI has set January 1, 2025 as the last deadline for banks, public sector banks (PSBs) and service providers to implement the necessary changes.
Major changes to be implemented by January 1, 2025:
Enhanced Transaction Limit: UPI 123Pay transaction limit will officially increase from Rs 5,000 to Rs 10,000.
Aadhar OTP Onboarding: Aadhaar OTP will be mandatory to onboard users to UPI 123Pay transactions.
transaction tagging
A new purpose code (86) has been introduced for UPI 123Pay transactions. All financial and non-financial transactions must include this code in the purpose=” ” tag.
The previous start mode (31) will no longer be valid.
UPI Numeric ID Mapper Integration: Members need to be integrated with UPI Numeric ID Mapper to enable UPI number functionality.
Why are these changes important?
RBI Governor Shaktikanta Das highlighted the transformative role of UPI in India’s financial ecosystem, making digital payments more accessible and inclusive. The updated limits aim to further spur innovation and encourage wider adoption of UPI-based solutions.
