The Reserve Bank of India (RBI) has announced important changes to the Unified Payments Interface (UPI) to make digital payments easier and more accessible for everyone. The limit for UPI Lite transactions has been increased from ₹500 to ₹1,000, while the overall wallet limit for UPI Lite has been raised from ₹2,000 to ₹5,000.
RBI Governor highlighted how UPI has changed India’s financial landscape, stating, “UPI has transformed India’s financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation. To further encourage wider adoption of UPI and make it more inclusive, it has been decided to enhance the per-transaction limit in UPI123Pay from ₹5,000 to ₹10,000, and to increase the UPI Lite wallet limit from ₹2,000 to ₹5,000 and per-transaction limit from ₹500 to ₹1,000.”According to the RBI’s Development and Regulatory Policies, these updates are part of a larger effort to make UPI products more widely used.
UPI Lite: Previously, UPI Lite had a transaction limit of ₹500 and an overall wallet limit of ₹2,000, with the option for auto-replenishment. To expand its usability, the RBI has decided to raise the UPI Lite wallet limit to ₹5,000 and the per-transaction limit to ₹1,000. The framework enables small-value payments in offline digital modes, which includes UPI Lite, will be amended accordingly.
UPI Transaction Limit Increased To Rs 5 Lakh
NPCI has raised the UPI transaction limit to ₹5 lakh for sectors like tax payments, healthcare, education, and financial investments, effective September 16, 2024. This change enables high-value transactions through UPI, promoting digital payments across broader financial activities. However, the limit for peer-to-peer transfers remains at ₹1 lakh. Users should check with their banks to confirm the availability of the new limit.