RBI Increases Automatic Payment Limit Via UPI To ₹1 Lakh

New Delhi: In a major boost to digital transactions, the Reserve Bank of India (RBI) has increased the limit for automatic payments through the Unified Payments Interface (UPI) to Rs 1 lakh per transaction. This substantial jump from the previous limit of Rs 15,000 applies specifically to subscriptions to mutual funds, payments of insurance premiums, and credit card bills.

Previously, the Additional Factor of Authentication (AFA) relaxation was allowed for e-mandates and standing instructions for recurring transactions up to Rs 15,000. This covered cards, prepaid payment instruments, and UPI. However, the recent RBI circular titled “Processing of E-mandates for Recurring Transactions” announces a significant shift.

“It has been decided to increase the limit from Rs 15,000 to Rs 1,00,000 per transaction for subscription to mutual funds, payment of insurance premiums, and credit card bill payments,” the circular stated.

This move is expected to significantly enhance the convenience of making recurring payments, particularly for essential financial activities like mutual fund investments, insurance premium management, and settling credit card bills. The increased limit was announced by Reserve Bank Governor Shaktikanta Das during the December bi-monthly monetary policy announcement last week.

UPI has emerged as the preferred payment method for millions of Indians, recording a staggering 11.23 billion transactions in November alone. The increased limit for specific recurring payments is likely to further accelerate the adoption of UPI for various financial transactions.