RBI Raises UPI Payment Limits for Hospitals, Educational Institutions, and E-Mandates

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In a significant move, the Reserve Bank of India (RBI) has raised the Unified Payments Interface (UPI) payment limits for hospitals and educational institutions to Rs 5 lakh from the previous limit of Rs 1 lakh. Additionally, the cap for e-mandates for recurring payments has been increased to Rs 1 lakh.

Enhanced UPI Transaction Limits

Unveiling the monetary policy, RBI Governor Shaktikanta Das announced the enhancement of UPI transaction limits for various categories. For payments to hospitals and educational institutions, the limit has been increased to Rs 5 lakh per transaction, providing greater convenience and flexibility for individuals.

E-Mandate Framework

Recognizing the popularity of e-mandates for recurring payments, the RBI has raised the cap to Rs 1 lakh. This change aims to simplify and secure recurring transactions, requiring an additional factor of authentication for payments exceeding Rs 15,000.

Industry Response

The policy announcement has been met with positive reactions from industry leaders.

State Bank of India

Dinesh Khara, Chairman of State Bank of India, expressed his support for the move, stating that it will ensure UPI's emergence as a true public good. He also highlighted the significance of a unified regulatory framework for connected lending and web-aggregation of loan products, emphasizing their potential to enhance pricing, transparency, and customer centricity.

Standard Chartered Bank

Zarin Daruwala of Standard Chartered Bank commended the increased UPI transaction limits and e-mandate caps, believing that they will further encourage the use of digital payment channels.

Experian Credit

Saikrishnan Srinivasan of Experian Credit welcomed the higher UPI payment limits and the increase in e-mandate limit for recurring online transactions, stating that they will enable consumers to make payments more seamlessly.

NTT Data Payment Services India

Rahul Jain of NTT Data Payment Services India lauded the strategic measure, emphasizing its potential to stimulate digital transactions, reduce cash usage, and foster the growth of a cashless economy. He also highlighted the positive impact on consumer confidence and the importance of enhancing the limit for UPI on credit cards.

Paynearby

Yashwant Lodha of Paynearby viewed the increased UPI payments and e-mandates for specific merchant categories as a means to transition higher ticket transactions to a straight-through digital mode, reducing friction and opening up new customer segments for digital financial service providers.

Cashe

Joginder Rana of Cashe applauded the creation of a fintech repository, recognizing its potential to enhance transparency in the sector and facilitate policy approaches that positively impact a larger cross-section of the ecosystem.

Worldline India

Ramesh Narasimhan of Worldline India expressed optimism that the higher payment caps will facilitate smoother and more substantial payments in the healthcare and education sectors. He also anticipated a more rapid adoption of digital payments for mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.

DY Patil Medical College Hospital & Research Pune

J S Bhawalkar of DY Patil Medical College Hospital & Research Pune acknowledged the significant operational benefits of the enhanced UPI payment limit for the healthcare sector, benefiting both hospitals and patients or their families.

The RBI's decision to raise UPI payment limits and e-mandate caps has been widely welcomed by industry stakeholders. These changes are expected to enhance the convenience, security, and adoption of digital payments, contributing to the growth of a cashless economy and benefiting both individuals and businesses.