In a significant move aimed at facilitating easier access to essential services, the Reserve Bank of India (RBI) has raised the UPI payment limit for transactions related to healthcare and education. Governor Shaktikanta Das revealed this decision during the Monetary Policy Committee’s (MPC) bi-monthly review meeting on Friday, where several other crucial announcements were made.
The revised UPI payment limit for transactions made to hospitals and educational institutions has been increased from the existing cap of Rs 1 lakh to a more substantial Rs 5 lakh per transaction. This change is expected to empower consumers to make higher-value UPI payments specifically for education and healthcare purposes.
Governor Das also highlighted the adjustment in the cap for e-mandates for recurring payments, which has been increased to Rs 1 lakh from the previous limit of Rs 15,000. This adjustment applies to recurring payments such as mutual fund subscriptions, insurance premium subscriptions, and credit card repayments, aiming to simplify and encourage the usage of e-mandates.
In addition to these amendments, the RBI unveiled plans to establish a FinTech Repository, operationalized by the Reserve Bank Innovation Hub by April 2024 or earlier. This repository aims to enhance understanding and facilitate the fintech sector’s growth by gathering relevant information voluntarily from FinTechs. The move comes as financial entities increasingly collaborate with fintechs, contributing to the dynamic developments in the sector.
Governor Das also addressed the growing volume of data in the financial sector, noting that many entities are utilizing cloud facilities for data management. In response, the RBI is actively working on developing a cloud facility for the financial sector in India. The facility, set to roll out in a calibrated fashion over the medium term, is expected to bolster data security, integrity, privacy, scalability, and business continuity for banks and financial entities.
The decisions announced by the RBI reflect a strategic approach to adapting to the evolving financial landscape, with a focus on enhancing the accessibility, security, and efficiency of financial transactions and services.
