The Reserve Bank of India has introduced key enhancements to the Unified Payments Interface (UPI) to further boost digital payments and ensure greater inclusivity in India’s financial ecosystem. In a significant move, the RBI has increased the per-transaction limit for UPI123Pay from Rs 5,000 to Rs 10,000, and the UPI Lite wallet limit from Rs 2,000 to Rs 5,000, with the per-transaction limit for UPI Lite also raised from Rs 500 to Rs 1,000.
These updates are aimed at promoting wider adoption of UPI, which has already revolutionised digital payments in India by making transactions more accessible and user-friendly.
In addition to the UPI enhancements, the RBI has announced the introduction of a Beneficiary Account Name Look-up facility for RTGS and NEFT systems. At present, UPI IMPS provide a facility for the remitter of funds to verify the name of the receiver (beneficiary) before executing a payment transaction. It is now proposed to introduce such a facility for RTGS and NEFT system. This facility will enable the remitter to verify the name of the account-holder before effecting funds transfer to him/her through RTGS or NEFT. This will also reduce the possibility of wrong credits and frauds.
