In good news for UPI users, RBI Governor Shaktikanta Das announced on October 9,2024 that the limits for UPI transactions will be increased. This change aims to make digital payments easier and more inclusive.

As part of his monetary policy statement, Das highlighted that "UPI has transformed India's financial landscape by making digital payments accessible." Here are the key changes announced:

UPI Lite

• The transaction limit will rise from Rs 500 to Rs 1,000.
• The wallet limit will increase from Rs 2,000 to Rs 5,000.

UPI123Pay

• The per-transaction limit will go up from Rs 5,000 to Rs 10,000.

What is UPI Lite and UPI 123PAY?

UPI Lite allows users to make payments without entering a UPI PIN for transactions up to Rs 1,000. Users can add money to their UPI Lite wallet, which can now hold up to Rs 5,000.

UPI 123PAY is designed for feature phone users, offering four methods for payments:

• Pre-defined IVR number
• Missed call payment
• OEM-enabled payments
• Sound-based technology

These enhancements aim to promote wider use of UPI and make digital payments accessible to all users, including those without smartphones or internet access.