Hello friends! Welcome back to Motivational Banker, your one-stop solution for JAIIB, CAIIB, and pre-promotion preparation needs. In this blog, let’s explore the latest updates from RBI’s monetary policy announcement on October 9, 2024, particularly focusing on UPI limit revisions.

As part of its efforts to improve the ease and safety of digital transactions, the Reserve Bank of India (RBI) has introduced some significant enhancements. Let’s take a closer look at the key changes.

Feel free to watch the video to listen in Hindi or read the blog in English –

UPI123Pay: Empowering Feature Phone Users

Launched in March 2022, UPI123Pay enables feature phone users to perform UPI transactions without requiring a smartphone or internet. This service now supports 12 languages, making it more inclusive and user-friendly across India.

Here’s the big news: the per-transaction limit for UPI123Pay has been doubled from ₹5,000 to ₹10,000. This increase allows feature phone users to perform larger transactions, making UPI123Pay even more accessible and functional for a wider audience.

What’s New?

• Enhanced Limit: ₹5,000 → ₹10,000
• Multilingual Support: Available in 12 languages

These changes are sure to benefit users who rely on feature phones, ensuring they aren’t left behind in India’s digital payments revolution.

UPI Lite: Making Small Transactions Easier

UPI Lite, designed for small-value transactions, has also seen significant updates. Previously, the wallet limit for UPI Lite was capped at ₹2,000. With the latest revision, it’s been increased to ₹5,000. Additionally, the per-transaction limit has been doubled from ₹500 to ₹1,000.

These changes ensure that users can make small-value payments, like purchasing groceries or paying utility bills, more conveniently.

Key Updates in UPI Lite:

• Wallet Limit: ₹2,000 → ₹5,000
• Per-Transaction Limit: ₹500 → ₹1,000

This is a big step toward making UPI the preferred choice for micro-payments in India, enhancing both speed and user experience.

RTGS/NEFT: Beneficiary Name Look-Up

Another notable update focuses on enhancing safety in RTGS (Real-Time Gross Settlement) and NEFT (National Electronic Funds Transfer) systems. Soon, users will be able to verify the beneficiary’s name before initiating a funds transfer, much like the feature currently available in IMPS and UPI.

This proposed safety feature will provide users an added layer of assurance and security, helping to avoid errors and fraud. Before transferring funds, you’ll be able to confirm that the recipient’s name matches your intended beneficiary, making the system more reliable.

What to Expect:

• Beneficiary Name Verification: Before initiating RTGS or NEFT transactions
• Improved Safety: Similar to IMPS and UPI systems

A Quick Recap

Here’s a summary of the updates announced on October 9, 2024:

1. UPI123Pay: Per-transaction limit increased from ₹5,000 to ₹10,000. Available in 12 languages for feature phone users.
2. UPI Lite: Wallet limit raised from ₹2,000 to ₹5,000. Per-transaction limit increased from ₹500 to ₹1,000, making small-value transactions more convenient.
3. RTGS/NEFT: Beneficiary name look-up feature introduced, enhancing safety and reliability in fund transfers.

These changes are effective as of November 20, 2024. Please note that limits and policies are subject to future revisions, so always stay updated with the latest RBI guidelines.

Thank you for reading this blog! I hope this information helps you in your JAIIB, CAIIB, or pre-promotion exam preparation. Stay tuned for more updates and detailed insights.