On October 9, Reserve Bank of India (RBI) Governor Shaktikanta Das declared that an increase in UPI transaction limits would be implemented in order to improve digital payments. The adjustments include raising the UPI Lite wallet limit from ₹2,000 to ₹5,000 and raising the UPI 123Pay per-transaction limit from ₹5,000 to ₹10,000.
By implementing these changes, UPI should be able to reach a wider audience and enable more people to use digital payments. The ability to conduct transactions without internet access with UPI 123Pay is very helpful for people who live in places with spotty connectivity. Users will now be able to make larger transactions with greater comfort thanks to the new ₹10,000 limit.
Additionally, the limit on the UPI Lite wallet—which enables minor transactions without bank authorization—will be raised to ₹5,000. The purpose of this update is to make frequent, low-value transactions easier to utilise, which will help users who depend on the Lite service.
According to Mehul Mistry, Global Head of Strategy at Digital Financial Services, the rise will make UPI Lite users’ convenience and feature phone users’ ability to make digital payments easier.
The UPI network handled more than 500 million transactions every day in September, with average daily values of ₹68,800 crore—up from ₹66,475 crore in August—and transaction values above ₹20 lakh crore for five months in a row.
