The Reserve Bank of India (RBI) has announced important changes to the Unified Payments Interface (UPI) system, making digital payments more accessible for people across the country. The two major updates include raising the transaction limits for UPI 123Pay and UPI Lite, which are designed to simplify payments, especially for feature phone users and those who prefer small transactions.
UPI 123Pay is a special feature of UPI that allows users with basic mobile phones (feature phones) to make digital payments without needing a smartphone or an internet connection. This service has been a game-changer for many people in rural areas where internet access is limited. The RBI has now increased the per-transaction limit for UPI 123Pay from ₹5,000 to ₹10,000. This means that users can now make larger payments using their feature phones, which is expected to benefit millions of people who rely on UPI 123Pay for their daily transactions. This move will help users in paying for a wider range of services, such as utility bills, shopping, and online purchases, all from their basic mobile phones. As more people adopt UPI 123Pay, it will further drive digital payments in regions where smartphone penetration is low.
These changes were announced by RBI Governor Shaktikanta Das during the latest Monetary Policy Committee (MPC) meeting, where he emphasized the need to improve the user experience of digital payments for a larger section of the population.
Along with UPI 123Pay, the RBI has also increased the limits for UPI Lite, which is a simplified version of UPI designed for small, quick payments. UPI Lite allows users to store money directly on their phones, making it easier to pay without needing to access the bank for every transaction. The wallet limit for UPI Lite has now been raised from ₹2,000 to ₹5,000. This will allow users to store more money on their phones, making it more convenient for them to make everyday payments like buying groceries, paying for transportation, or shopping. Additionally, the per-transaction limit on UPI Lite has been increased from ₹500 to ₹1,000. This means users can now make larger payments in one go, further simplifying the payment process.
The RBI’s decision to increase the transaction limits for UPI 123Pay and UPI Lite is expected to have a positive impact on the adoption of digital payments in India. The higher transaction limits will allow users to make larger payments without needing to use cash or switch between different payment methods. UPI 123Pay, which works without smartphones or internet access, will become even more useful in rural areas and among users with limited technology access. This will encourage more people to shift from cash to digital payments. The increased limits will contribute to the growth of India’s digital economy, as more users adopt UPI for their payments. This will strengthen India’s push toward a cashless society. Both UPI 123Pay and UPI Lite continue to offer secure and efficient payment methods, giving users peace of mind while handling their transactions.
With these enhancements, the RBI is making digital payments more inclusive and user-friendly for millions of people across India. By raising the limits for UPI 123Pay and UPI Lite, the RBI is supporting a cashless economy and empowering users to enjoy the convenience and security of digital transactions. As UPI continues to evolve, these updates will play a crucial role in driving the growth of digital payments, making everyday transactions easier for users across India.
