In a significant move, the RBI announced on Friday an increase in the UPI payment limit for hospitals and educational institutions from the current Rs 1 lakh to Rs 5 lakh. Governor Shaktikanta Das, unveiling the December bi-monthly monetary policy, highlighted the periodic review of UPI transaction limits.
The proposal aims to empower consumers to make higher-value UPI payments, specifically for education and healthcare, reflecting a fivefold increase in the transaction limit. Additionally, the RBI plans to boost e-mandates for recurring payments, suggesting an increase in the limit from Rs 15,000 to Rs 1 lakh. This adjustment covers recurring payments for mutual fund subscriptions, insurance premiums, and credit card repayments, contributing to the widespread adoption of e-mandates.
In parallel, the RBI revealed plans for a “Fintech Repository,” set to be operationalized by the Reserve Bank Innovation Hub by April 2024 or earlier. Fintechs are encouraged to voluntarily contribute relevant information to this repository, fostering a better understanding of developments in the fintech ecosystem.
Addressing the evolving landscape, Governor Das also shared insights into the RBI’s initiatives, including the establishment of a cloud facility for the financial sector in India. With banks and financial entities managing growing volumes of data, this facility aims to enhance data security, integrity, and privacy while providing better scalability and business continuity. The phased rollout of the cloud facility is part of the RBI’s medium-term plans.
Source: PTI
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