In a move to boost digital payment accessibility, the Reserve Bank of India (RBI) has raised the per-transaction limits for UPI 123Pay and UPI Lite. Announced on October 9 during its monetary policy review, the UPI 123Pay limit has been doubled from Rs 5,000 to Rs 10,000, while UPI Lite’s wallet limit has been increased from Rs 2,000 to Rs 5,000. These changes aim to enhance financial inclusion by enabling higher-value transactions, particularly for users of feature phones, and making low-value digital payments more efficient.
UPI 123Pay, launched in March 2022, was designed for India’s 400 million feature phone users who lack smartphones or stable internet access. By raising the transaction limit to Rs 10,000, the RBI hopes to make this platform more versatile for non-smartphone users. UPI 123Pay operates via methods such as IVR systems, missed calls, app-based functions, and proximity sound-based payments, allowing a broader section of the population to conduct digital transactions seamlessly.
Additionally, increasing the UPI Lite wallet limit to Rs 5,000 is intended to simplify small, everyday payments like grocery shopping or transport fares by allowing users to store funds directly on their devices for faster transactions. Meanwhile, the RBI’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5%, balancing inflation management with economic growth, while maintaining its GDP growth forecast for FY25 at 7.2%. Inflation control remains a central focus, with a target of 4.5%.
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