The RBI has increased the UPI payment limit for hospitals and educational institutions to Rs 500,000 as of December 8, 2023. Previously, the limit was Rs. 100,000 per transaction.
UPI Payment Limit: In India, many people use UPI as a popular payment option. The Reserve Bank of India (RBI) wants to expand the use of UPI payments. As a result, the RBI has increased the transaction limit for UPI payments in hospitals and educational institutions to Rs 5 lakh starting on December 8, 2023.
This means that you can now use UPI payments not only for small transactions but also for larger transactions up to Rs 5 lakh. Previously, the limit was set at Rs 1 lakh per transaction.
Make UPI Transactions up to Rs 5 lakh
The RBI Governor, Shaktikanta Das, has announced the decisions made by the Monetary Policy Committee (MPC). They have reviewed the limits on UPI transactions regularly. As a result, the proposal is to raise the UPI transaction limit from Rs 1 lakh to Rs 5 lakh per transaction, specifically for payments to hospitals and educational institutions.
What was the limit before?
Just so you know, in the other categories, the maximum amount you could transfer using UPI was set at Rs 1 lakh per transaction.
For transactions related to capital markets (AMC, broking, mutual funds, etc.), collections (credit card payments, loan repayments, EMIs), insurance, etc., the UPI payment limit was capped at Rs 2 lakh.
In December 2021, the UPI payment limit for the Retail Direct Scheme and IPO subscription was raised to Rs 5 lakh.
How will the new change be helpful?
It is understood that this change will assist consumers in making larger UPI payments for education and healthcare purposes.
The announcement to raise the UPI payment limit is a positive step that will improve transactions.
By increasing this limit in healthcare facilities, both patients and hospitals will greatly benefit, as it will make transactions easier and faster.