Mumbai: The Reserve Bank of India (RBI) has decided to raise the UPI limit for UPI auto payments for specified transactions. The payments to healthcare units like hospitals and educational facilities like colleges and schools has been hiked to Rs 5 lakh per transaction, from the current Rs 1 lakh. RBI Governor Shaktikanta Das announced this.
The RBI has also proposed to increase the limit for additional factor authentication (AFA) to Rs 1 lakh, for mutual fund investments, insurance and credit card repayments. Till now, payments above Rs 15,000 require AFA. No one-time password (OTP) based authentication will be required for payments made up to Rs 1 lakh.
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‘e-Mandates for making payments of recurring nature have become popular among customers. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000. It is now proposed to enhance this limit to Rs 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,’ said RBI Governor.
Currently, if you initiate an e-mandate, you require an additional factor authentication (one OPT on email and another on mobile) for transactions beyond Rs 15,000. This limit has now been raised to Rs 1 lakh for recurring online payments relating to mutual fund SIPs (systematic investment plans), insurance premiums and credit card repayments. The RBI says this will accelerate the use of e-mandates.
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