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UPI Lite Wallet: The Reserve Bank of India (RBI) kept its repo rate steady at 6.5% for the tenth consecutive time and at the same time, the Monetary Policy Committee (MPC) has increased the limit per transaction to ₹10,000. And has also increased the UPI Lite wallet and transaction limits.

The Reserve Bank of India (RBI) kept its repo rate steady at 6.5% for the tenth consecutive time and at the same time, the Monetary Policy Committee (MPC) increased the limit per transaction to ₹10,000 and also increased the UPI Lite wallet and transaction limits.

UPI Lite Wallet: Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday announced the decisions made in the Monetary Policy Committee (MPC) meeting. In this meeting, the central bank has decided to keep the key interest rate stable at 6.5% for the tenth consecutive time. This step has been taken to focus on economic stability and growth. Also, RBI has decided to increase the transaction limit of UPI 123Pay and UPI Lite Wallet while making changes in the digital payment system, which will facilitate more people in digital transactions.

UPI 123Pay limit increased

UPI 123Pay, which is designed for feature phone users, has now increased the per transaction limit from ₹5,000 to ₹10,000. UPI 123Pay was launched in March 2022 and aims to facilitate digital payments to the 40 crore Indian feature phone users who do not have an internet connection or a smartphone. The feature allows users to make UPI payments without the Internet securely and seamlessly, thereby increasing financial inclusion.

UPI Lite wallet and increased transaction limits

Along with this, the UPI Lite wallet limit has been increased from ₹2,000 to ₹5,000, and the per transaction limit of UPI Lite has also been increased from ₹100 to ₹500. UPI Lite is used for small payments, and this increase will provide more convenience to the users. This limit increase is quite important for small merchants and customers, making their daily transactions more simple and secure.

The limit for paying tax has also been increased.

]RBI had increased the limit of tax payment through UPI from ₹1 lakh to ₹5 lakh per transaction in its August 2024 monetary policy announcement. Governor Shaktikanta Das had said, "This decision has been taken to make tax payment through UPI more simple." This will make it easier for taxpayers to make large payments through UPI, and the tax payment process will become more streamlined.

Towards the future of digital payments

According to a report by PwC India, the total number of UPI transactions in India is projected to reach 439 billion by 2028-29, up from around 131 billion in the previous financial year. The report, published in "The Indian Payments Handbook - 2024-29", states that India's digital payments landscape has evolved significantly over the past eight years. The report also states that the industry is expected to grow threefold, from 159 billion transactions in 2023-24 to 481 billion transactions by 2028-29.

Three-fold increase in digital payments

This growth will not only strengthen India's digital ecosystem but will also increase the opportunities for consumers to make safe, simple, and fast payments. The impact of these changes in the field of digital payments in India will be seen not only in urban areas but also in rural and remote areas, where facilities like UPI 123Pay and UPI Lite are connecting people to digital payments.

This expansion of UPI and increase in transaction limits is an important step towards advancing India's digital economy. This initiative of the government and the central bank is making the country's financial system more inclusive and flexible, benefiting people from all sections of society.