New UPI transaction limits: All you need to know

In a big move for Unified Payment Interface (UPI) users, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced enhancements to UPI transaction limits on Wednesday (October 9), as part of RBI's monetary policy statement.

"UPI has revolutionised India's financial landscape by making digital payments accessible and inclusive, driven by constant innovation and adaptation," Das remarked.

To further promote the use of UPI and broaden its reach, Das revealed key changes.

The per-transaction limit for UPI 123Pay will be increased from Rs 5,000 to Rs 10,000, offering greater flexibility for feature phone users who rely on this service. Besides, the UPI Lite wallet limit will rise from Rs 2,000 to Rs 5,000, while the per-transaction cap is set to double from Rs 500 to Rs 1,000.

Das also announced plans to extend a vital feature currently available for UPI and Immediate Payment Service (IMPS) transactions — name verification of the beneficiary before completing a payment — to the Real-Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) systems. This measure will allow payers to verify the recipient's name before transferring funds, aiming to reduce the likelihood of incorrect credits and fraud.

Also Read: 'Swag': Union minister hails Bengaluru auto driver for his 'smart' UPI payment method

What is UPI Lite Wallet

UPI Lite enables seamless transactions without the need to enter a UPI PIN for payments up to Rs 500 per transaction, which will soon be increased to Rs 1,000. Users need to load their UPI Lite wallet with funds, and the enhanced limit of Rs 5,000 will provide more flexibility in managing day-to-day transactions.

UPI Lite X Offline: Both sender and receiver must have UPI Lite X enabled for offline transactions.

UPI Lite Wallet: Utilises the existing UPI Lite wallet for transactions without an internet connection.

Transaction Limit: A maximum of ₹500 for both UPI Lite X offline and online transactions.

Seamless Connectivity: Transactions can be executed with or without internet access.

Lite-to-Lite X Transfers: Funds are debited from the payer's Lite X account and credited to the payee's account.

NFC Technology: Uses NFC for offline transaction communication.

Transaction Rules: Governed by configurable risk rules; allows one debit and up to ten credit transactions offline.

Reconnection Requirement: Users must go online within 4 days after an offline transaction.

Android Compatible: Currently available on Android devices.

Also Read: If UPI is booming, where's all the cash? The UPI-cash paradox raises questions

Transaction Flow

Open your UPI app.

Tap the Tap & Pay icon.

Enter the transaction amount.

Tap your device on the receiver's device.

Funds are transferred without needing a UPI PIN.

Benefits of UPI LITE X

Offline Transactions: Enable payments without internet access.

Accessibility: Ideal for low or poor network areas like flights, parking lots, or trekking sites.

Higher Success Rates: Enjoy improved transaction success with UPI Lite X.

Balance Management

Uninstallation/Reinstallation: Before uninstalling or changing devices, disable UPI Lite X to reclaim your balance. If not done, the balance will be held and refunded after 4 days post-reinstallation.

Device Change: Disable UPI Lite X prior to changing devices (e.g., Android to iOS) to ensure balance refund. If you cannot access the old device, contact your remitter or issuer bank for assistance.

Lost/Stolen Devices: If your device is lost or damaged and you cannot disable UPI Lite X, reach out to your remitter or issuer bank for balance retrieval.

Also Read: About Rs 10,000 cr of credit being disbursed through UPI a month: Senior official

What is UPI 123Pay

This is an innovative payment solution aimed at feature phone users, offering four methods for completing transactions:

Pre-defined Interactive Voice Response (IVR) numbers

Missed call payments

OEM-enabled transactions

Sound-based technology

With these options, UPI 123Pay ensures secure, accessible transactions even for users without a smartphone or internet connection.

These enhancements underscore RBI's commitment to promoting digital financial inclusion and expanding the ease of cashless payments across India.

Also Read: About Rs 10,000 cr of credit being disbursed through UPI a month: Senior official

SBI’s top 6 tips for secure UPI transactions

No UPI PIN Needed for Receiving Funds

When receiving money, remember that you are not required to enter your UPI PIN.

Confirm the Recipient’s Identity

Always double-check the identity of the person before sending any money.

Decline Unknown Collect Requests

Avoid accepting payment requests from unknown or suspicious sources.

Keep Your UPI PIN Confidential

Never share your UPI PIN with anyone, under any circumstances.

Verify QR Code Payments

Ensure the recipient’s details are accurate before completing any QR code transaction.

Regularly Update Your UPI PIN

Change your UPI PIN periodically to enhance security.