RBI increased the spending UPI limit before Diwali

On Wednesday, RBI Governor Shaktikanta Das made a new announcement regarding UPI 123 Pay and UPI Lite. To promote UPI service in the country, RBI has increased the UPI Lite wallet limit from Rs 2,000 to Rs 5,000. Per transaction limit has also increased from Rs 500 to Rs 1000. 

The Reserve Bank has now raised the per transaction limit for UPI123Pay from Rs 5 thousand to Rs 10 thousand. UPI123Pay was launched in March 2022. This facility is available in 12 Indian languages. This facility can now be availed by a larger user group. Ramakrishnan Ramamurthy, Chief Distribution and Operations Officer, Worldline in India added, "It is required to increase the capacity of UPI to deliver financial services to every person. The reach of UPI 123 Pay and UPI Lite has increased and it has also got acceptability. In such a situation, increasing the transaction limit is a positive step. This will help in increasing the value of transactions."

The enhancement of the per-transaction limit for UPI Lite Wallet is a step in the right direction, said Venkataraman Venkateswaran, President and CFO of Federal Bank Group. Besides this, the decision of the Monetary Policy Committee- MPC was declared by the Reserve Bank of India- RBI. The central bank of the country declared to maintain the repo rate unchanged at 6.5 percent.

RBI Governor Shaktikanta Das said that the decision to hold the repo rate at 6.5 percent was supported by five out of six members of the Monetary Policy Committee. "RBI maintained the repo rate at the same level and changed the stance to neutral, which was largely in line with the consensus," Venkateswaran added. "The growth-inflation trade-off is well maintained and this was a signal to change the stance."