The Reserve Bank of India (RBI) has announced major updates to UPI Lite and UPI123Pay, enhancing the scope of digital payments in India.
Governor’s Statement:
“UPI has transformed India’s financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation. To further encourage wider adoption of UPI and make it more inclusive, it has been decided to (i) enhance the per-transaction limit in UPI123Pay from ₹5,000 to ₹10,000; and (ii) increase the UPI Lite wallet limit from ₹2,000 to ₹5,000 and per-transaction limit from ₹500 to ₹1,000.”
Key Changes for UPI Lite and UPI123Pay
- UPI Lite: New Transaction Limits
- The per-transaction limit for UPI Lite has now been raised from ₹500 to ₹1,000.
- The daily wallet limit for UPI Lite has increased to ₹5,000, allowing users to load more funds for small, frequent payments.
- UPI123Pay: Increased Limits
- The per-transaction limit for UPI123Pay has been increased from ₹5,000 to ₹10,000, enabling larger payments via feature phones.
What is UPI Lite?
UPI Lite simplifies micro-transactions by allowing payments without the need to enter a UPI PIN. It’s designed for everyday purchases like groceries, transport fares, and more, offering a seamless payment experience.
What is UPI123Pay?
Launched in 2022, UPI123Pay extends UPI services to feature phone users. It supports payments through methods like IVR and missed calls, ensuring digital inclusion beyond smartphone users.
Why Does This Matter?
These changes make digital transactions even more accessible and convenient. The increased limits for both UPI Lite and UPI123Pay mean users can handle larger payments and manage more frequent transactions with ease.
Stay tuned for more fintech updates!
