SUMMARY
- RBI raises UPI 123PAY transaction limit to Rs 10,000 and UPI Lite wallet limit to Rs 5,000.
- UPI Lite’s per-transaction limit increased to Rs 1,000 to enhance small-value transactions.
- UPI 123PAY continues to provide digital payment solutions for feature phone users through multiple payment options.
The Reserve Bank of India (RBI) has announced a significant increase in the transaction limits for UPI Lite and UPI 123PAY services, in a move aimed at broadening the adoption of digital payments in India. The announcement was made by RBI Governor Shaktikanta Das during the Monetary Policy Meeting.
The enhanced limits are designed to make UPI payments more accessible, particularly for users of feature phones and those making low-value transactions, ensuring that India’s digital payments ecosystem remains inclusive.
The per-transaction limit for UPI 123PAY has been increased from Rs 5,000 to Rs 10,000. UPI 123PAY enables users with feature phones to make digital payments through various options like IVR calls, app-based functionality, missed call payments, and sound-based proximity payments.
For UPI Lite, the wallet limit has been raised from Rs 2,000 to Rs 5,000, while the per-transaction limit has been doubled from Rs 500 to Rs 1,000. UPI Lite is designed for small-value transactions, allowing users to make payments without accessing the core banking systems in real time, thus reducing load on banking infrastructure.
RBI Governor Das praised UPI for its transformative role in India’s financial landscape, emphasizing how the continuous innovation of UPI has made digital payments “accessible and inclusive.”
Both initiatives are expected to drive further financial inclusion by catering to diverse segments of the population, including those without smartphones or access to high-end banking apps. The increase in transaction limits will also enable smoother and more convenient low-value transactions, further cementing UPI’s role in India’s digital economy.
