For certain categories and subscriptions to mutual funds, the country’s central bank, the Reserve Bank of India, has increased the limit for automatic payments via UPI to Rs 1 lakh per transaction from its existing limit of Rs 15,000 on Tuesday.
UPI Transaction Limit Increase
Once again, RBI has given a piece of good news to the people by increasing auto payment up to Rs 1 lakh through UPI.
Notably, this limit was only Rs 15 thousand earliers
If you are wondering about this service, it can be used in many services such as payment of mutual funds, insurance premium and credit card bills.
So far, the relaxation in Additional Factor of Authentication (AFA) is permitted for the processing of e-mandates/standing instructions on cards, prepaid payment instruments and UPI (Unified Payments Interface), for subsequent recurring transactions having values up to Rs 15,000.
In a circular, RBI said, “…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 on the processing of e-mandates for recurring transactions.”
Meanwhile, it won’t be an exaggeration to say that UPI has emerged as a preferred mode of payment in the country as it can cater to a large section of the population as already over 11.23 billion transactions have been recorded during November this year.
In the same regard last week, an announcement was made by Reserve Bank Governor, Shaktikanta Das when he was unveiling the December bi-monthly monetary policy.
How Does This Help?
With this increased limit of Rs 1 lakh per transaction in some categories, the customers will be able to easily make recurring payments for mobile bill, electricity bill, EMI payment, entertainment/OTT subscription, insurance and mutual funds.
In order to achieve this, the recurring e-mandate will have to start using any UPI application, according to the RBI circular.
So far, an OTP was required for auto payment transactions above Rs 15,000.
But, now the consumer can easily approve auto pay up to Rs 1 lakh without any OTP.
