The Reserve Bank of India (RBI) has increased the unified payments interface (UPI) transaction limit for education and healthcare facilities to Rs 5 lakh.
While announcing the decisions of the Monetary Policy Committee (MPC), RBI Governor Shaktikanta Das said, “The limit for various categories of UPI transactions has been reviewed from time to time. It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction.”
The transaction limit of UPI was capped at Rs 1 lakh per transaction, barring a few categories. The transaction limit for UPI payments for capital markets (AMC, broking, mutual funds, etc.), collections (credit card payments, loan re-payments, EMI), insurance, etc. was limited to Rs 2 lakh. In December 2021, the transaction limit for UPI payments for Retail Direct Scheme and IPO subscriptions was increased to Rs 5 lakh. Now, UPI payment limit for healthcare and educationally purposes have been hiked to Rs 5 lakh per transaction.
This move will help consumers to make UPI payments of higher amounts for education and healthcare purposes, Das said.
Another announcement regarding UPI which was made was that, no additional factor of authentication (AFA) will be required for transactions of Rs 1 lakh for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayment