New Delhi , October 9 : In a bid to boost digital transactions and financial inclusion in the country, the Reserve Bank of India (RBI) has announced an increase in transaction limits for Unified Payments Interface (UPI) services, particularly for users of keypad mobile phones. The announcement was made by RBI Governor Shaktikanta Das during the policy rates announcement on Wednesday.

One of the key changes introduced is the enhancement of the per-transaction limit for UPI123Pay, a service that allows users to make UPI payments without an internet connection, from Rs 5,000 to Rs 10,000. UPI123Pay, launched in March 2022 by the National Payments Corporation of India (NPCI) in collaboration with the RBI, is aimed at providing seamless digital payment options to feature phone users who do not have access to smartphones or internet connectivity. RBI Monetary Policy Meeting 2024: Reserve Bank of India Keeps Repo Rate Unchanged for 10th Time in a Row (Watch Video).

Governor Das highlighted that UPI has revolutionized India's digital payment ecosystem by making transactions accessible to all through continuous innovation. "To further encourage wider adoption of UPI and make it more inclusive, it has been decided to enhance the per-transaction limit in UPI123Pay from Rs 5,000 to Rs 10,000; and increase the UPI Lite wallet limit from Rs 2,000 to Rs 5,000 and per-transaction limit from Rs 500 to Rs 1,000.

In addition to increasing the UPI123Pay limits, the RBI has also enhanced the UPI Lite wallet limit from Rs 2,000 to Rs 5,000. The per-transaction limit for UPI Lite has also been increased from Rs 500 to Rs 1,000. These changes are aimed at simplifying low-value transactions and offering a more convenient payment experience. Another significant development is the introduction of a beneficiary account name look-up facility for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems.

Currently, such a facility exists for UPI and Immediate Payment Service (IMPS), where the remitter can verify the name of the receiver before completing a transaction. By extending this feature to RTGS and NEFT, the RBI aims to reduce errors in fund transfers and minimize the risk of fraud by allowing remitters to verify the account holder's name before initiating a transfer. RBI Monetary Policy Meeting 2024: Reserve Bank of India Retains Repo Rate at 6.5%, Forecasts 7.2% GDP Growth for FY25.

"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" added Das. These initiatives are part of the RBI's broader efforts to enhance the digital payment infrastructure in the country and provide greater security, convenience, and inclusivity to all users, especially those who rely on basic mobile devices for financial transactions.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)