UPI Payment Limit to Hospitals Educational Institutes Raised to Rs 5 Lakh RBI

Mumbai: To encourage the use of UPI for medical and educational services, the Reserve Bank on Friday proposed to enhance the limit for payments to hospitals and educational institutions from Rs one lakh to Rs 5 lakh per transaction. Separate instructions will be issued shortly, said the central bank.

Due to the ease of payments offered by it, UPI is emerging as a preferred mode of payment for not only small-value transactions but also for large-value transactions. Currently, there are 35 crore active users on UPI, which roughly accounts for eight digital transactions a month by a citizen. The RBI governor also announced new limits for e-mandates for recurring payments. Thus limits for e-Mandates for making payments of a recurring nature have been raised to Rs one lakh for mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.

Meanwhile, the Indian Banks Association (IBA) and other bank unions have reached a consensus on wage revision and agreed to an annual increase of 17 percent in salaries for five years starting fiscal 2021-22. The wage revision will be effective Nov 1, 2022.