RBI Initiates Game-Changing Reforms: UPI Payment Cap Soars to Rs 5 Lakh for Hospitals and Educational Institutions
08-12-2023 : In a significant move, the Reserve Bank of India (RBI) announced a substantial increase in the UPI payment limit for hospitals and educational institutions, raising it from the existing Rs 1 lakh to Rs 5 lakh per transaction. Governor Shaktikanta Das, while unveiling the December bi-monthly monetary policy, highlighted that the review of UPI transaction limits for various categories is a continual process. This enhancement is particularly aimed at enabling consumers to make higher UPI payments for educational and healthcare purposes.
Additionally, the RBI has proposed an increase in the cap for e-mandates for recurring payments from the current limit of Rs 15,000 to Rs 1 lakh per transaction. This adjustment, applicable to mutual fund subscriptions, insurance premium subscriptions, and credit card repayments, aims to streamline and encourage the usage of e-mandates for transactions of a recurring nature.
In a parallel development, the RBI introduced plans to establish a “Fintech Repository” to gain a better understanding of developments within the fintech ecosystem and provide support to the sector. This repository, slated to be operationalized by the Reserve Bank Innovation Hub in April 2024 or earlier, encourages voluntary contributions of relevant information from fintechs.
Moreover, Governor Das revealed the RBI’s ongoing efforts towards creating a cloud facility for the financial sector in India. Recognizing the increasing volume of data being handled by banks and financial entities, the establishment of a dedicated cloud facility aims to enhance data security, integrity, and privacy. This strategic move is expected to provide better scalability and business continuity for financial institutions.
The phased rollout of the cloud facility, slated for the medium term, reflects the RBI’s commitment to staying ahead of the curve in fostering a secure, innovative, and technologically advanced financial ecosystem in India.
