Increased UPI Limit
Context:
The Reserve Bank of India (RBI) recently announced an Increased UPI Limit for Unified Payment Interface (UPI) transactions, aiming to boost the adoption of this popular digital payment solution.
More on News:
- UPI123Pay: The limit has been raised from ₹5,000 to ₹10,000.
- UPI Lite wallets: It has increased from ₹2,000 to ₹5,000, with the per transaction limit now set at ₹500 instead of ₹100.
UPI Lite and UPI123PayUPI Lite:UPI Lite is designed for small-value transactions and allows users to make payments without needing to access the core banking infrastructure for each transaction.It functions like a digital wallet. UPI123Pay: UPI123Pay is aimed at users with non-smartphones or feature phones, enabling them to conduct UPI transactions without needing internet connectivity. |
State of UPI Transactions In India:
Transaction Volume and Value:
- Record Transactions: In September 2024 alone, UPI recorded over 9 billion transactions, with a total value exceeding ₹15 lakh crore (approximately $180 billion).
- Monthly Growth: UPI transactions have consistently grown month-on-month, with annual growth rates often exceeding 100% in both volume and value.
- User Base: UPI has over 500 million registered users, indicating widespread acceptance among various demographics, including urban and rural populations.
- Diverse Use Cases: UPI facilitates a wide range of transactions, including peer-to-peer transfers, merchant payments, utility bill payments, and even investments in mutual funds and stock trading.
Other key Initiatives taken by Indian Government to increase UPI TransactionsFinancial Inclusion Initiatives:
Promotional Campaigns:
Integration with Government Services:
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Challenges to UPI Adoption:
- Digital Literacy: Low Awareness and Limited Technical Skills.
- Infrastructure Issues: Internet Connectivity and Power Supply.
- Cybersecurity Concerns: Fraud and Scams and Data Privacy Issues.
- Merchant Acceptance: Limited Merchant Onboarding and Transaction Fees.
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