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The Reserve Bank of India raised the Unified Payments Interface (UPI) fee limits for hospitals and educational institutions from ₹1 lakh to ₹5 lakh per transaction. The announcement was made by Governor Shaktikanta Das whereas unveiling the December bi-monthly financial coverage.
“The enhanced limit will help consumers make UPI payments of higher amounts for education and healthcare purposes,” he stated.
E-mandates for recurring transactions
The cap on e-mandates for recurring on-line transactions was additionally hiked to ₹1 lakh.
Under the e-mandate framework, a further issue of authentication (AFA) is required for recurring transactions exceeding ₹15,000 at present. This is now being raised to ₹1 lakh for mutual fund investments, insurance coverage premia funds and bank card funds.
“E-mandates for making payments of a recurring nature have become popular among customers. It is now proposed to enhance this limit to ₹1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments,” the governor stated.
The measure, he stated, will additional speed up the utilization of e-mandates.
RBI proposes to arrange ‘Fintech Repository’
In one other growth, the RBI additionally introduced to arrange a “Fintech Repository” for a greater understanding of developments within the fintech ecosystem and assist the sector.
“This 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,” Mr. Das stated.
Financial entities like banks and NBFCs in India are more and more partnering with fintechs.
Mr. Das additionally stated that the Central financial institution is engaged on the institution of a cloud facility for the monetary sector in India. “Banks and financial entities are maintaining an ever-increasing volume of data. Many of them are utilising cloud facilities for this purpose,” he added.
“Adding such a facility would enhance data security, integrity, and privacy. It will also facilitate better scalability and business continuity,” he stated.
Mr. Das stated the cloud facility is meant to be rolled out in a calibrated trend over the medium time period.
(With inputs from PTI)
