RBI’s decisions 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.
Yashwant Lodha, Co-Founder, PayNearby
FinTech BizNews Service
Mumbai, 9 October, 2024: The Reserve Bank of India, in today’s MPC meeting has announced that the per-transaction limit for UPI 123Pay has been increased from Rs5,000 to Rs10,000. Additionally, the UPI Lite wallet limit has been raised from Rs2,000 to Rs5,000, and the per-transaction limit for UPI Lite has also been enhanced, increasing it from Rs100 to Rs500. In this regard, leading voices from IT companies are sharing their thoughts on this development.
Dilip Modi, Founder & CEO of Spice Money:
“The RBI’s decision to increase the UPI 123Pay transaction limit to Rs10,000 and the UPI Lite wallet limit to Rs5,000 is poised to be a transformative step towards deepening digital financial inclusion in India, particularly in rural and semi-urban areas. 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. 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.
This announcement by the RBI also signals that digital payments are going to continue to play a central role in India's financial ecosystem, and we are excited to support this evolution, bringing financial freedom to the hinterlands of the country.
At Spice Money, we see this as a pivotal moment in the mission to bridge the financial gap between rural and urban India. This decision will not only boost adoption but also foster greater confidence in digital payments, helping accelerate the transition to a cashless economy.”
Rahul Jain – CFO, NTT DATA Payment Services India
“Increase in per transaction limit to Rs 10,000 from Rs 5,000 under UPI 123 and enhanced limits in UPI Lite is a big positive. Under-served categories such as senior citizens, and users from rural India with limited usage of digital means may find this beneficial. Enhanced limits can be particularly useful to make utility bill payments and for payments to other users.
This welcome move from the RBI comes after the SEBI’s directive to allow UPI based block mechanism for funding secondary market trades in the capital market. Overall, the use-cases for UPI are increasing. This augurs well for both the consumer as well as for the industry, as payments become more efficient and convenient."
Yashwant Lodha, Co-Founder, PayNearby
“India’s digital payments landscape has seen remarkable growth, yet a significant portion of the population remains underserved due to a lack of familiarity with technology. To truly drive financial inclusion, it’s essential to make digital payments more accessible through continuous innovation. The increase in per-transaction limit for UPI 123 to Rs10,000 and raising the UPI Lite wallet limit to Rs5,000 with a Rs1,000 per transaction limit, are critical steps by the regulator in this direction. These changes will help broaden access, encourage greater adoption, and ultimately fuel consumption, contributing to the overall growth of the Indian economy.”
