UPI123Pay Transaction Cap Raised: Users Can Now Transfer Up to ₹10,000
The Reserve Bank of India (RBI) has announced an increase in transaction limits for Unified Payments Interface (UPI) services. UPI123Pay, introduced in March 2022 to cater to feature phone users, now has a raised transaction cap of ₹10,000, up from the previous limit of ₹5,000. Additionally, the UPI Lite wallet limit has been increased to ₹5,000 from ₹2,000, with a per-transaction limit rising to ₹1,000, up from ₹500. This move, according to RBI Governor Shaktikanta Das, is aimed at expanding the adoption of UPI and promoting financial inclusion across the country.
In another development, the central bank is enhancing security for Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) transactions. Currently, UPI and Immediate Payment Service (IMPS) offer a feature that allows remitters to verify the recipient’s name before completing a transfer. To extend this facility, the RBI is introducing a ‘beneficiary account name look-up’ feature for RTGS and NEFT systems. This will enable remitters to confirm the beneficiary’s name using the account number and branch IFSC code, thereby reducing transaction errors and potential fraud. Detailed guidelines for this feature will be released soon.
Furthermore, the RBI is taking steps to address the growing risks posed by climate change to the financial sector. To support regulated entities in conducting thorough climate risk assessments, the RBI plans to establish the ‘Reserve Bank – Climate Risk Information System’ (RB-CRIS). This system will consist of two main components: a publicly accessible directory that provides links to meteorological and geospatial data sources, and a data portal containing climate-related datasets in standardized formats. The data portal will initially be available to regulated entities, with access expanding in phases.
The RBI has also focused on capital-raising measures for Primary (Urban) Co-operative Banks (UCBs). In 2022, guidelines were introduced for the issuance of share capital and securities to align with the Banking Regulation (Amendment) Act, 2020. However, these guidelines did not cover newly introduced capital provisions, such as issuing special shares or shares at a premium. To address these gaps, a Working Group was formed to operationalize these new provisions, following recommendations from the Expert Committee on Primary (Urban) Co-operative Banks, chaired by former RBI Deputy Governor N.S. Vishwanathan. Based on the Working Group’s insights, the RBI will soon release a Discussion Paper on Capital Raising Avenues for UCBs, inviting feedback from stakeholders.
