“Currently, the per-transaction limit in UPI123Pay is capped at Rs 5000. In order to widen the use-cases, in consultation with the stakeholders, it has been decided to enhance the per-transaction limit to Rs 10,000,” RBI said.
UPI123 was launched in March 2022, with a view to enable feature-phone users to use UPI. This facility is now available in 12 languages.
Meanwhile, a limit of Rs 500 per transaction and an overall limit of Rs 2000 per UPI Lite wallet, is presently applicable, with the facility of auto-replenishment.
“To widen the scope of usage of this product, it has now been decided to increase the UPI Lite wallet limit to Rs 5,000 and per-transaction limit to Rs 1,000,” RBI said.
The RBI also announced a beneficiary account name look-up facility to enable remitters in RTGS and NEFT to verify the name of the beneficiary account holder before initiating funds transfer.”By expanding the scope of UPI 123Pay & UPI Lite, the RBI is enabling a larger section of our population especially those without access to smartphones or a reliable internet connection to conduct digital transactions in their daily lives,” said Dilip Modi, Founder, Spice Money. “This development will further democratize digital payments and drive financial empowerment in regions that have historically been underserved by traditional banking infrastructure, and promote secure and safe transactions across the country.”