RBI MPC Meeting: UPI transaction limit for hospitals, educational institutions payments raised to ₹5 lakh

RBI MPC Meeting: Further e-Mandates for making payments of a recurring nature has been raised to 1 lakh for mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.

Jocelyn Fernandes
Updated8 Dec 2023, 11:30 AM IST
File photo: Shaktikanta Das, governor of the Reserve Bank of India
File photo: Shaktikanta Das, governor of the Reserve Bank of India(Bloomberg)

RBI Monetary Policy (MPC) Meet: Reserve Bank of India Governor Shaktikanta Das made two announcements related to the Unified Payments Interface (UPI) in India, one specific and one with broader ramifications for the online payments ecosystem.

The first announcement Das said is for "enhancing UPI transaction limit for specific categories" such as payments to hospitals and educational institutions from the current 1 lakh to 5 lakh.

"The limit for various categories of UPI transactions has been reviewed from time to time. It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from 1 lakh to 5 lakh per transaction. This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes," he said.

Further, in the broader announcement, Das announced the enhancement of the limit in e-Mandates for recurring payments for specified categories.

Thus limits for e-Mandates for making payments of a recurring nature have been raised to 1 lakh for mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. 

He stated, “E-mandates for making payments of a recurring nature have become popular among customers. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding 15,000. It is now proposed to enhance this limit to 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. This measure will further accelerate the usage of e-mandates.”

Repo Rate Unchanged

The Reserve Bank of India's MPC has kept repo rates unchanged at 6.5 percent, RBI Governor Shaktikanta Das announced on December 8.

“The RBI MPC has decided unanimously to keep the policy repo rate unchanged at 6.50 percent. Consequently, the standing deposit facility (SDF) rate remains at 6.25 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent,” Das said. 

“The MPC also decided by a majority of 5 out of 6 members to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth,” he added.

Real GDP growth is projected at 7 percent for the current year, FY23-24. CPI inflation is projected at 5.4 percent for FY24.

Track our LIVE coverage of the RBI Monetary Policy here

What was expected?

Experts had anticipated that the central bank would likely keep the short-term interest rate unchanged in its upcoming MPC review this week. This expectation stemmed from India's inflation remaining within a comfortable range and the economy showing accelerated growth.

The RBI has maintained the benchmark policy rate (repo) at the same level for the past four bi-monthly monetary policies. The last adjustment to the repo rate was an increase in February 2023, setting it at 6.5 percent. This adjustment concluded a series of interest rate hikes initiated in May 2022 due to the repercussions of the Russia-Ukraine war and subsequent disruptions in the global supply chain, which led to elevated inflation within the country.

Also Read: RBI MPC Meeting: Repo rate unchanged, growth forecast raised, key highlights of December policy meet

The RBI MPC meeting was held from December 6 to December 8, with Governor Das, leading discussions for the committee. The MPC's primary responsibility is to determine the policy repo rate, aiming to achieve the targeted inflation rate while considering growth objectives.

The RBI MPC consists of six members – both external and RBI officials. Alongside Governor Das, RBI officials are Rajiv Ranjan, serving as Executive Director, and Michael Debabrata Patra, as the Deputy Governor. While Shashanka Bhide, Ashima Goyal, and Jayanth R Varma are the external members.

Das will address a post-policy press conference at noon on December 8.

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:8 Dec 2023, 11:30 AM IST
Business NewsEconomyRBI MPC Meeting: UPI transaction limit for hospitals, educational institutions payments raised to ₹5 lakh

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Indian Oil Corporation share price

    138.10
    02:44 PM | 4 NOV 2024
    -6.9 (-4.76%)

    Tata Steel share price

    146.90
    02:44 PM | 4 NOV 2024
    -2.8 (-1.87%)

    Reliance Industries share price

    1,297.90
    02:44 PM | 4 NOV 2024
    -41.2 (-3.08%)

    Tata Motors share price

    822.50
    02:44 PM | 4 NOV 2024
    -21.1 (-2.5%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    City Union Bank share price

    178.45
    02:37 PM | 4 NOV 2024
    0.6 (0.34%)

    Federal Bank share price

    204.75
    02:38 PM | 4 NOV 2024
    0.5 (0.24%)

    UTI Asset Management Company share price

    1,349.00
    02:37 PM | 4 NOV 2024
    -11.25 (-0.83%)

    Jubilant Pharmova share price

    1,238.00
    02:38 PM | 4 NOV 2024
    -26 (-2.06%)
    More from 52 Week High

    Poly Medicure share price

    2,865.15
    02:38 PM | 4 NOV 2024
    -297.55 (-9.41%)

    Vodafone Idea share price

    7.92
    02:38 PM | 4 NOV 2024
    -0.53 (-6.27%)

    Chennai Petroleum Corporation share price

    617.25
    02:38 PM | 4 NOV 2024
    -38.3 (-5.84%)

    PVR Inox share price

    1,484.75
    02:36 PM | 4 NOV 2024
    -90.65 (-5.75%)
    More from Top Losers

    Rainbow Childrens Medicare share price

    1,647.40
    02:38 PM | 4 NOV 2024
    97.8 (6.31%)

    Fine Organic Industries share price

    5,057.45
    02:33 PM | 4 NOV 2024
    215.35 (4.45%)

    Gillette India share price

    10,339.45
    02:38 PM | 4 NOV 2024
    377.65 (3.79%)

    Firstsource Solutions share price

    352.60
    02:38 PM | 4 NOV 2024
    12.3 (3.61%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,415.000.00
      Chennai
      80,421.000.00
      Delhi
      80,573.000.00
      Kolkata
      80,425.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      101.03/L0.23
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts