UPI transaction limit increased: RBI announces new limits for Lite wallet and 123Pay

What are the new UPI transaction limits announced by the RBI, and how will these changes impact users of UPI Lite Wallet and UPI 123Pay? Find out.

By: MD IJAJ KHAN
| Updated on: Oct 11 2024, 07:07 IST
Safe online payment tricks: Know 5 easy ways to keep your money safe on UPI, Net banking
UPI transaction limit increased
1/6 Do you use Unified Payment Interface (UPI) linked payment-making applications like Google Pay (GPay), Paytm, PhonePe, among others? The process of making online payment via these apps is simple, however, sometimes even a simple mistake like wrong click, number, among others can cause you huge monetary loss. Here are some of the safety tips which you should consider while making UPI payments. (Bloomberg)
UPI transaction limit increased
2/6 Screen lock: Keeping a strong screen lock, password or PIN not only for your phone but also for all payment or financial transaction apps is very important. It not only saves your phone from landing in the wrong hands but also helps in avoiding leaking of personal and crucial details. However, you should avoid keeping simple passwords like your name, date of birth, mobile number, etc. (Pixabay)
UPI transaction limit increased
3/6 Do not share your PIN: You should never share your PIN with anyone. Sharing your PIN makes you vulnerable for frauds as anyone can access your phone and transfer the amount. In case you feel that your PIN has been exposed, you should change it immediately. (Saumya Khandelwal/HT PHOTO)
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4/6 Do not click on unverified links or attend fake calls: Lots of fake messages containing links of some unverified keeps on popping in your inbox. You should avoid clicking on such links as it can cause you huge financial losses. You should also avoid picking up fake calls. The caller pretends to be calling from your bank or some other organisation and can ask you for your details like PIN, OTP, etc. Hackers usually share links or make calls and ask users to download a third-party app for verification. It can be noted that banks never ask for PIN, OTP or any other personal details. (Reuters)
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5/6 Keep updating UPI App regularly: Every application requires an update and each update brings better features and benefits. You should always keep updating the UPI payment app to the latest version. (Unsplash)
UPI transaction limit increased
6/6 Avoid using multiple payment applications: You should avoid keeping multiple payment applications in your phone and should install only the trusted and verified payment applications from the PlayStore or App Store. (Bloomberg)
UPI transaction limit increased
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RBI announces new transaction limits for UPI Lite Wallet and UPI 123Pay to enhance digital payments. (ANI)

The Reserve Bank of India (RBI) has introduced new transaction limits for UPI Lite Wallet and UPI 123Pay, a significant step toward enhancing digital payment systems in India. RBI Governor Shaktikanta Das shared these updates during the monetary policy statement on Wednesday. He emphasised the impact of Unified Payments Interface (UPI) on transforming the financial landscape of India by increasing accessibility and fostering innovation.

RBI has decided to implement the following changes:

1. The per transaction limit for UPI 123Pay will increase from Rs. 5,000 to Rs. 10,000.

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2. The UPI Lite wallet limit will rise from Rs. 2,000 to Rs. 5,000, while the per transaction limit will increase from Rs. 500 to Rs. 1,000.

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Das stated that these changes aim to encourage greater adoption of UPI and to make it more inclusive for all users. He also proposed a new feature that allows remitters to verify the name of the account holder before completing a transfer through the Real Time Gross Settlement System (RTGS) and the National Electronic Funds Transfer (NEFT) system. This proposal seeks to reduce errors and fraud in the payment process by ensuring that the funds reach the correct recipient.

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What are UPI Lite Wallet and UPI 123Pay

UPI Lite Wallet simplifies UPI transactions, enabling users to make payments without needing to enter their UPI PIN for amounts up to Rs. 500. The new limit will allow transactions up to Rs. 1,000 in the future, streamlining the payment process.

To use UPI Lite, users must first fund their UPI Lite wallet. The previous maximum amount for this funding was Rs. 2,000; however, it has now increased to Rs. 5,000, allowing users greater flexibility for managing their transactions.

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UPI 123Pay serves as an innovative solution for feature phone users, providing four different methods to facilitate UPI payments:

1. Pre-defined Interactive Voice Response (IVR) number

2. Missed call payment method

3. OEM-enabled payment systems

4. Sound-based payment technology

These options ensure that users without smartphones or internet access can still participate in the digital economy, enhancing inclusivity and convenience for a broader audience. The changes reflect a commitment to improving financial services and encouraging a cashless economy in India.

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First Published Date: 10 Oct, 15:52 IST
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