The Reserve Bank of India (RBI) has increased UPI transaction limits for payments to hospitals and educational institutions, raising the cap from ₹1 lakh to ₹5 lakh. This adjustment is aimed at facilitating higher UPI payments for healthcare and education expenses. In response to the growing popularity of e-Mandates for recurring payments, the limits for e-Mandates have also been raised from ₹15,000 to ₹1 lakh, benefiting consumers in various financial transactions such as mutual funds, insurance premium, and credit cards. The move has been well-received in the medical and education sectors. The education sector, valued at $117 billion, welcomed the limit hike, anticipating smoother payments without relying on alternatives like demand drafts.
An upward thrust for the fintech industry
RBI Governor Shaktikanta Das also proposed the establishment of a ‘Fintech Repository’ during the press conference, set to be operationalized by the Reserve Bank Innovation Hub in April 2024 or earlier. India’s fintech sector, primarily led by the UPI platform, is gaining global recognition. Reports indicate that it is the third-largest globally and among the fastest-growing in funding and deal volumes. With support from a robust Digital Public Infrastructure, consulting firm BCG predicts a 35% annual growth in Indian fintech revenues, reaching $190 billion by 2030.
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