RBI for raising UPI transaction limit to Rs 5 lakh in select cases

The transaction information investigation shows that 50% transactions done UPI were beneath Rs 200, indicating its success.

By Piyush Shukla

The Reserve Bank of India (RBI) has projected expanding the transaction bounds for payments made done Unified Payments Interface (UPI) for the Retail Direct Scheme and archetypal nationalist offering (IPO) applications to Rs 5 lakh from Rs 2 lakh. The cardinal slope volition soon contented abstracted instructions to the National Payment Corporation of India (NPCI) successful this regard.

In a connection connected developmental and regulatory policies issued station the monetary argumentation committee meeting, the cardinal slope said implicit clip the UPI has go a fashionable outgo enactment for IPOs and reportedly, IPO applications of Rs 2 lakh to Rs 5 lakh represent astir 10% of each subscription applications. The transaction bounds successful the UPI strategy was enhanced from Rs 1 lakh to Rs 2 lakh successful March 2020 and to further promote the usage of UPI by retail investors, the cardinal slope has projected expanding the UPI transaction limit.

The RBI Retail Direct Scheme was launched connected November 12 to facilitate retail investors to unfastened a retail nonstop gilt relationship to put successful superior issuance and secondary marketplace transactions successful authorities securities (G-Secs).

The cardinal slope said UPI is the single-largest retail outgo strategy successful the country, with 14 crore transactions per time according to October data, and 1 of the archetypal objectives of UPI was to regenerate currency for low-value transactions. The transaction information investigation shows that 50% transactions done UPI were beneath Rs 200, indicating its success.

“These low-value transactions, however, utilise important strategy capableness and resources, astatine times starring to lawsuit inconvenience owed to transaction failures due to the fact that of issues related to connectivity. It is, therefore, projected to connection a simpler process travel by enabling tiny worth transactions done an “On-device” wallet successful UPI app, which volition conserve banks’ strategy resources without immoderate alteration successful the transaction acquisition for the user,” the RBI said.