RBI raises UPI lite wallet limit, introduces new customer-friendly features
- In Reports
- 01:03 PM, Oct 09, 2024
- Myind Staff
The Reserve Bank of India (RBI) announced several changes to improve digital payments and enhance customer convenience. One major update is the increase of the UPI Lite wallet limit to Rs 5,000, along with raising the per-transaction limit to Rs 1,000. This move aims to encourage more people to use UPI Lite, an instant payment system designed for mobile phone users. Previously, UPI Lite allowed transactions up to Rs 500 with an overall wallet limit of Rs 2,000, along with the option for auto-replenishment.
In the latest bi-monthly monetary policy review for October, RBI Governor Shaktikanta Das also revealed that the per-transaction limit for UPI123Pay would be increased from Rs 5,000 to Rs 10,000. UPI123Pay, which was introduced in March 2022, enables users of feature phones (non-smartphones) to make UPI payments and is available in 12 different languages.
Another notable announcement was the introduction of a "beneficiary account name look-up facility" for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. This new feature allows users to verify the name of the recipient by entering the account number and branch IFSC code before making a transaction. According to Das, this will enhance customer confidence by reducing the chances of sending money to the wrong person or falling victim to fraud.
Additionally, in response to the growing risks posed by climate change, the RBI is setting up the 'Reserve Bank Climate Risk Information System' (RB-CRIS). This new system will help financial institutions assess climate-related risks by providing high-quality data on local climate scenarios, forecasts, and emissions.
RB-CRIS will consist of two components: a publicly accessible web-based directory of climate data sources and a data portal with standardised datasets, available exclusively to regulated financial institutions in phases. This initiative aims to close gaps in climate-related data and ensure financial stability amid environmental challenges.
These updates reflect the RBI's ongoing commitment to improving payment systems and addressing emerging financial risks.
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