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Increased UPI Limit
Context:
The Reserve Bank of India (RBI) recently announced increased limits for Unified Payment Interface (UPI) transactions, aiming to boost 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.
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.
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.