On December 8, 2023, the Reserve Bank of India shared important news about the Unified Payment Interface (UPI).
They increased the limit for transactions from Rs 1 lakh to Rs 5 lakh. Now, people can use this for payments to hospitals and schools only.
Many were wondering when this change would happen, and now there is an update.
The National Payment Corporation of India (NPCI) told banks and payment providers to offer this from January 10, 2024.
The decision to raise the UPI limit was made in a meeting in December 2023.
The Reserve Bank increased it from Rs 1 lakh to Rs 5 lakh, but only for transactions related to hospitals and schools.
After this, NPCI explained the details in a circular on December 19, 2023.
Importantly, only hospitals and schools that ask for this higher limit will benefit from it.
Starting January 10, 2024, people can make UPI payments up to Rs 5 lakh, according to the NPCI notification.
All banks, payment providers, and apps must provide this service. Users can make these payments only to verified sellers.
UPI began in India in 2016 and has become very popular for digital payments.
As more people prefer UPI over cash, the RBI decided to increase the limit for payments in hospitals and schools.
