RBI proposes increase in UPI Lite transaction limit to ₹500

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The Reserve Bank of India (RBI) has put forth a proposal to enhance the per transaction payment limit for UPI Lite in offline mode to ₹500. The central bank also introduced other measures aimed at promoting the widespread adoption and usage of digital payments within the country.

Current Limits and Need for Expansion

At present, the Reserve Bank has set a limit of ₹200 per transaction and an overall cap of ₹2,000 per payment instrument for small value digital payments in offline mode, including UPI Lite and the National Common Mobility Card (NCMC). These channels offer swift, dependable, and contactless modes of payment for everyday small value transactions, such as transit payments.

RBI Enhanced Limits to Encourage Adoption

RBI Governor Shaktikanta Das highlighted the demand for an increase in these limits to accommodate the evolving needs of users. In an effort to promote broader adoption of these payment modes and facilitate their applicability to various use cases, the proposal entails raising the per transaction limit to ₹500. However, the overall limit of ₹2,000 will remain unchanged to mitigate the potential risks associated with the relaxation of two-factor authentication.

RBI Introducing Conversational Payments on UPI

To enhance the digital payment experience, the RBI plans to introduce ‘Conversational Payments’ on the Unified Payments Interface (UPI). This innovative feature will allow users to engage in transactions through conversational interactions with AI-powered systems. The goal is to create a safe and secure environment for users to initiate and complete transactions using AI technology.

Enabling Offline Payments via NFC

RBI Governor Shaktikanta Das also revealed plans to introduce offline payments on UPI using Near Field Communication (NFC) technology through ‘UPI-Lite’ on-device wallet. This move aims to further expedite small value transactions on UPI by offering offline transaction capabilities, particularly in situations with weak or no internet/telecom connectivity. The proposed enhancements are expected to contribute to the growth of digital payments and encourage the adoption of UPI-Lite. We will issue instructions to the National Payments Corporation of India (NPCI) shortly to facilitate the implementation of these measures.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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RBI proposes increase in UPI Lite transaction limit to ₹500

The Reserve Bank of India (RBI) has put forth a proposal to enhance the per transaction payment limit for UPI Lite in offline mode to ₹500. The central bank also introduced other measures aimed at promoting the widespread adoption and usage of digital payments within the country.

Current Limits and Need for Expansion

At present, the Reserve Bank has set a limit of ₹200 per transaction and an overall cap of ₹2,000 per payment instrument for small value digital payments in offline mode, including UPI Lite and the National Common Mobility Card (NCMC). These channels offer swift, dependable, and contactless modes of payment for everyday small value transactions, such as transit payments.

RBI Enhanced Limits to Encourage Adoption

RBI Governor Shaktikanta Das highlighted the demand for an increase in these limits to accommodate the evolving needs of users. In an effort to promote broader adoption of these payment modes and facilitate their applicability to various use cases, the proposal entails raising the per transaction limit to ₹500. However, the overall limit of ₹2,000 will remain unchanged to mitigate the potential risks associated with the relaxation of two-factor authentication.

RBI Introducing Conversational Payments on UPI

To enhance the digital payment experience, the RBI plans to introduce ‘Conversational Payments’ on the Unified Payments Interface (UPI). This innovative feature will allow users to engage in transactions through conversational interactions with AI-powered systems. The goal is to create a safe and secure environment for users to initiate and complete transactions using AI technology.

Enabling Offline Payments via NFC

RBI Governor Shaktikanta Das also revealed plans to introduce offline payments on UPI using Near Field Communication (NFC) technology through ‘UPI-Lite’ on-device wallet. This move aims to further expedite small value transactions on UPI by offering offline transaction capabilities, particularly in situations with weak or no internet/telecom connectivity. The proposed enhancements are expected to contribute to the growth of digital payments and encourage the adoption of UPI-Lite. We will issue instructions to the National Payments Corporation of India (NPCI) shortly to facilitate the implementation of these measures.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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