The enhanced limit will help consumers make UPI payments of higher amounts for education and healthcare purposes
In a major decision, the RBI on Friday announced to raise the UPI payment limit to hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh presently and hiked the cap for e-mandates for recurring payments to Rs 1 lakh. Unveiling the December bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das said the limit for various categories of Unified Payments Interface (UPI) transactions has been reviewed from time to time. “It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction,” he said.
The enhanced limit will help consumers make UPI payments of higher amounts for education and healthcare purposes.
He further said that e-mandates for making payments of a recurring nature have become popular among customers.
Under the e-mandate framework, an additional factor of authentication (AFA) is required for recurring transactions exceeding Rs 15,000 currently.
“It is now proposed to enhance this limit to Rs 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments,” the governor said.
The measure, he said, will further accelerate the usage of e-mandates.
Dr J.S. Bhawalkar, Dean, Dr. D.Y. Patil Medical College, Hospital and Research Centre, Pimpri, Pune, on the enhancement of UPI payment limit for healthcare to Rs 5 lakh said, “The decision by the RBI to raise the UPI payment limits for healthcare to 5 lakh is a revered move that will be of significant operational benefits to both hospitals and patients or their families. Earlier, there were restrictions on payment limits, or the payee had to use time-consuming payment methods.”
“This change in the e-transaction mandates will enable patients or caretakers to make swift transfers without any hassle in times of emergency. On the other hand, it will also boost transparency and fair play in the healthcare ecosystem”, he added.
CA Jyoti Prakash Mahapatra, CFO, Ruby Hall Clinic on the RBI MPC announcement on UPI transaction’s impact on healthcare mentioned, “The announcement of the increased UPI payment limit is a welcome move, signalling a positive shift in the dynamics of financial transactions. This strategic decision holds the potential to bring about a transformative impact, especially in the context of healthcare. By starting with this elevated UPI payment limit, both patients and hospitals stand to benefit significantly, as it addresses existing challenges in a new era of seamless and efficient transactions. As per expectation, the UPI payment domain will boost in solving the frequent issues faced.”