UPI payment limit to hospitals, educational institutes raised to Rs 5 lakh: RBI

In a major decision the RBI on Friday announced to raise the UPI payment limit to hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh presently and hiked the cap for emandates for recurring payments to Rs 1 lakhUnveiling the December bimonthly monetary policy Reserve Bank Governor Shaktikanta Das said the limit for various categories of Unified Payments Interface UPI transactions has been reviewed from time to timeIt is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction he saidThe enhanced limit will help consumers make UPI payments of higher amounts for education and healthcare purposesHe further said that emandates for making payments of a recurring nature have become popular among customersUnder the emandate framework an additional factor of authentication AFA is required for recurring transactions exceeding Rs 15000 currentlyIt 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 the governor saidThe measure he said will further accelerate the usage of emandatesIn another development the RBI also announced to set up a Fintech Repository for a better understanding of developments in the fintech ecosystem and support the sectorThis will be operationalised by the Reserve Bank Innovation Hub in April 2024 or earlier FinTechs would be encouraged to provide relevant information voluntarily to this Repository Das saidFinancial entities like banks and NBFCs in India are increasingly partnering with fintechsDas also said that the central bank is working on the establishment of a cloud facility for the financial sector in IndiaBanks and financial entities are maintaining an everincreasing volume of dataMany of them are utilising cloud facilities for this purpose he addedThe Reserve Bank is working on establishing a cloud facility for the financial sector in India for this purpose he said adding such a facility would enhance data security integrity and privacyIt will also facilitate better scalability and business continuityDas said the cloud facility is intended to be rolled out in a calibrated fashion over the medium termThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever