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Automatic payment limit via UPI raised to Rs 1 lakh: RBI

Mumbai: The Reserve Bank of India on Tuesday increased the limit for automatic payments through UPI to Rs 1 lakh per transaction from the existing Rs 15,000 for certain categories, including subscription to mutual funds. 

 

As of now, relaxation in Additional Factor of Authentication (AFA) is permitted while processing e-mandates/standing instructions on cards, prepaid payment instruments and UPI (Unified Payments Interface), for subsequent recurring transactions with values up to Rs 15,000.

 

“It has been decided to increase the limit from Rs 15,000 to Rs 1, 00,000 per transaction for subscription to mutual funds, payment of insurance premiums, and credit card bill payments,” the central bank said in a circular on “processing of e-mandates for recurring transactions”.

 

UPI has emerged as a preferred mode of payment for a large section of the population with over 11.23 billion transactions recorded in November. An announcement in this regard was made by Reserve Bank Governor Shaktikanta Das, while unveiling the December bi-monthly monetary policy last week.

 

This story is sourced from PTI.

Tags: Business