RBI increases UPI 123pay limit to ₹10,000 and UPI Lite limit to ₹5,000

The Reserve Bank of India (RBI) has announced significant changes to enhance digital payment accessibility through the Unified Payments Interface (UPI). The per-transaction limit for UPI 123Pay has been raised from Rs.5,000 to Rs.10,000, while the UPI Lite wallet limit has increased from Rs.2,000 to Rs.5,000. Additionally, the per-transaction limit for UPI Lite has been hiked to Rs.1,000 from Rs.500.

RBI Governor Shaktikanta Das highlighted that these changes aim to promote wider UPI adoption and make digital transactions more accessible, particularly for users with limited internet access. UPI 123Pay, launched in March 2022, allows feature phone users to make digital payments without an internet connection and is available in 12 languages.

The enhancements will facilitate larger transactions through UPI 123Pay, providing users with greater flexibility. Increasing the UPI Lite wallet limit to Rs.5,000 allows users to store more funds, making it easier to conduct frequent low-value transactions without constant top-ups.

Recent data shows that UPI transactions reached over 500 million daily in September, with a total transaction value exceeding Rs.20 lakh crore for the fifth consecutive month. Average daily transaction values rose to Rs.68,800 crore in September, up from Rs.66,475 crore in August. This represents a 31% increase in UPI transactions compared to the previous year, totaling Rs.20.64 lakh crore, showcasing the growing reliance on digital payment systems across India.