RBI Announces New UPI Transaction Limits

RBI Announces New UPI Transaction Limits

The Reserve Bank of India (RBI) announced their decision about the repo rate after their monetary review meeting. They decided not to change the repo rate for the fifth consecutive time. This means that interest rates will remain the same once again. Even though people did not get the benefit of reduced interest rates, there has been a significant change regarding UPI (Unified Payments Interface) transactions. The RBI has increased the transaction limit for UPI payments. Now, people can make UPI transactions up to 5 lakh rupees, increased from the previous limit of 1 lakh rupees.

This increased limit for UPI transactions will only benefit certain areas, specifically hospitals and educational institutions. Now, payments up to 5 lakh rupees can be made using UPI at these places. This change is expected to encourage more people to use UPI, making it easier for them to pay hospital bills and school or college fees. However, the RBI did not make any changes to the repo rate, keeping it stable at 6.5 percent. This decision by the RBI has dampened the hopes of those who were expecting cheaper loans.

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