RBI Raises Transaction Limits for UPI 123Pay and UPI Lite to Promote Digital Payments

RBI Raises Transaction Limits for UPI 123Pay and UPI Lite to Promote Digital Payments

The Reserve Bank of India (RBI) has announced a significant increase in the transaction limits for UPI 123Pay and UPI Lite in a bid to further enhance the digital payments ecosystem. The per-transaction limit for UPI 123Pay has been doubled to ₹10,000 from its previous limit of ₹5,000, while the transaction limit for UPI Lite has been raised to ₹1,000 from ₹500. Additionally, the overall wallet limit for UPI Lite has been increased to ₹5,000 from ₹2,000.

Speaking on the development, RBI Governor Shaktikanta Das emphasized that UPI has revolutionized India’s financial system by making digital payments accessible to a wider population, particularly in rural areas and for underserved communities such as senior citizens. “To encourage broader adoption of UPI and enhance inclusivity, it has been decided to raise the per-transaction limit in UPI 123Pay from ₹5,000 to ₹10,000, and to increase the UPI Lite wallet limit from ₹2,000 to ₹5,000 and the per-transaction limit from ₹500 to ₹1,000,” said Das.

Industry experts have welcomed this move as a positive step toward boosting digital financial inclusion. According to Rahul Jain, Chief Financial Officer at NTT DATA Payment Services India, the enhanced limits will particularly benefit individuals from rural areas and senior citizens, who may have limited digital payment usage. These increased limits are also expected to aid in paying utility bills and facilitating peer-to-peer transactions more efficiently.

The move follows a directive from the Securities and Exchange Board of India (SEBI) that allowed UPI-based block mechanisms for funding secondary market trades in the capital market. Overall, the expanding use-cases for UPI point to a more efficient and convenient payment system, benefiting both consumers and businesses alike.