In a significant development, the Reserve Bank of India on Wednesday revised the wallet limit for the UPI Lite from Rs 2,000 to Rs 5,000. According to the new rules introduced, the upper transaction limit for UPI Lite under offline framework has been increased from Rs 500 to Rs 1,000 per transaction.
Check new guidelines
As per the new regulations, the RBI said the offline framework has been updated and the enhanced limits for UPI Lite shall be Rs 1,000 per transaction, with Rs 5,000 being the total limit at any point in time.
The framework earlier prescribed an upper limit of Rs 500 for digital payment transaction under offline framework and a total limit of Rs 2,000 for a payment instrument at any point in time.
Total limits for UPI Lite to take effect immediately
The enhanced transaction and total limits for UPI Lite are set to take effect immediately, providing a significant boost to users who rely on this mode of payment for day-to-day purchases. The RBI has emphasized that this update aims to further streamline digital payment solutions while ensuring security and ease of use for consumers.
The circular has been issued under the authority of Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007, and is expected to create a more robust and inclusive digital payment ecosystem in India.
Earlier, On October 9, the RBI announced an increase in transaction limits for Unified Payments Interface (UPI) services, particularly for users of keypad mobile phones.
The announcement was made by RBI Governor Shaktikanta Das during the last policy rates announcement. The enhanced transaction and total limits for UPI Lite are set to take effect immediately.
In October 2024, Unified Payments Interface (UPI) achieved a historic milestone by processing 16.58 billion financial transactions in a single month, underscoring its pivotal role in India's digital transformation. Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has revolutionized the nation's payment ecosystem by integrating multiple bank accounts into a single mobile application. This system enables seamless fund transfers, merchant payments, and peer-to-peer transactions, offering users flexibility through scheduled payment requests.
(With Inputs From ANI)
