During the latest Monetary Policy Committee (MPC) meeting, the decision was upheld to maintain the key repo rate unchanged for the fifth consecutive time, as announced by Reserve Bank of India (RBI) Governor Shaktikanta Das. Alongside the monetary policy details, notable modifications were revealed concerning the Unified Payments Interface (UPI), particularly the elevation of payment limits within this system.
Governor Das disclosed significant changes within the UPI structure, primarily the substantial increase in transaction limits for specific sectors. The UPI payment cap for hospitals and educational institutions was elevated from ₹1 lakh to ₹5 lakh, intending to facilitate larger-scale transactions within these crucial sectors.
The revised limits, as Governor Das highlighted, aim to empower users to conduct higher-value UPI transactions specifically for education and healthcare purposes, reflecting a concerted effort to streamline payments in these critical domains.
In a separate move, the central bank expanded the scope of e-mandates for recurring payments. The earlier limit of ₹15,000 per transaction has been significantly augmented to ₹1 lakh. Das underscored that this higher threshold for recurring payments concerning mutual fund subscriptions, insurance premiums, and credit card repayments will notably benefit individuals involved in such transactions.
The adjustment in e-mandate regulations includes an additional authentication factor for recurring transactions exceeding the existing ₹15,000 threshold. This shift towards a ₹1 lakh limit per transaction seeks to enhance the ease and flexibility of conducting recurring payments, specifically in sectors like mutual funds, insurance, and credit card repayments.
Governor Das emphasized, “It is now proposed to enhance this limit to ₹1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.”
The decision to maintain the unchanged repo rate amidst these modifications signifies the RBI’s comprehensive approach to balancing monetary policy stability while facilitating improvements in the payment ecosystem for specific sectors and transaction types.
