RBI Raises Limits for UPI Lite and UPI 123Pay.
Economy Business
The Reserve Bank of India (RBI) announced an increase in the transaction limit for Unified Payment Interface (UPI) 123Pay and the UPI Lite wallet limit, allowing users to make higher value digital payments via mobile phones. Following this, the National Payments Corporation of India (NPCI) issued a circular directing its members, including banks and service providers, to implement and comply with these new limits.
- UPI LITE is a new payment solution that leverages the trusted NPCI Common Library (CL) application to process low-value transactions that have been set at below Rs 500.
- UPI 123Pay allows feature phone users to make digital payments without needing an internet connection. It offers four methods for transactions such as IVR (Interactive Voice Response), Missed calls, Original Equipment Manufacturer (OEM)-embedded apps, and Sound-based technology, all with the newly increased transaction limits.
- The NPCI has set a deadline of January 1, 2025, for banks, public sector banks (PSBs), and service providers to fully implement these changes.
Main Points:- (i) The transaction limit for UPI 123Pay has been raised from ₹5,000 to ₹10,000, enabling higher-value transactions. Additionally, UPI Lite wallet limits have increased from ₹2,000 to ₹5,000, with the per transaction limit rising from ₹500 to ₹1,000.
(ii) To bolster security, Aadhaar OTP authentication will be required for UPI 123Pay transactions.
(iii) A new transaction purpose code (86) has been introduced for UPI 123Pay, replacing code 31, to enhance tracking and reporting of transactions.
About RBI
CEO : Shaktikanta Das
Headquarter : Mumbai
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