RBI Hikes UPI Payment Limits For Education Fees and Health Bills
Remitting college/school fees and hospital bills, particularly large sums, will no longer be cumbersome tasks as the Reserve Bank of India”s (RBI) has decided to hike UPI payment limits for hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh per transaction.
During the bi-monthly Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das said, “This will help consumers make UPI payments of higher amounts for education and healthcare purposes.”
The RBI has also proposed to increase the limit for automatic payments (e-mandates) for online transactions from Rs. 15,000 to Rs. 1 lakh.
If it takes effect, customers will be able to set large amounts as automatic payments, making recurring online payments such as subscription services,utilities, insurance premiums,donations, mutual fund payments,credit card repayments, etc. easy.
“This will further accelerate the usage of e-mandates,” Das said. Launched by the National Payments Corporation of India (NPCI), the Unified Payments Interface (UPI) is a real-time payment system between two banks harnessing internet connectivity and smartphones. UPI revolutionized India”s digital arena with its hassle-free and easy-to-use features, which resulted in a thrusting digital economy.
UPI-enabled apps facilitate digital payments, fund transfers, and other financial services by linking bank accounts. In order to make payments through UPI-enabled apps, users need to create a unique UPI ID, which represents the user bypassing bank procedures.
