RBI hikes limits for UPI payments & e-mandates, to set up cloud facility, FinTech repository

by IANS |



Chennai, Dec 8 (IANS) Enhancing the payment limits for Unified Payments Interface (UPI), electronic mandates, setting up of cloud facilities, the financial sector and fintech repository were some of the major announcements made by the Reserve Bank of India Governor, Shaktikanta Das on Friday.


Das announced these measures on Friday after declaring the Monetary Policy Committee’s decision to retain the repo rate at 6.5 per cent and predicting the gross domestic product (GDP) growth rate at 7 per cent and inflation rate at 5.4 per cent for FY24.


“To encourage the use of UPI for medical and educational services, it is proposed to enhance the limit for payments to hospitals and educational institutions from Rs1 lakh to Rs 5 lakh per transaction. Separate instructions will be issued shortly,” he said.


According to Das, the UPI is becoming popular and the transaction limit was set at Rs 1 lakh barring categories like Capital Markets (AMC, Broking, Mutual Funds and others), Collections (Credit card payments, Loan repayments, EMI), Insurance and others where the transaction limit was set as Rs 2 lakh.


In December 2021, the transaction limit for UPI payments for Retail Direct Scheme and for IPO subscriptions was increased to Rs 5 lakh.


As regards the electronic mandates, Das also said the RBI has decided to exempt the additional factor of authentication (AFA) for transactions up to Rs 1 lakh for the following categories, viz., subscription to mutual funds, payment of insurance premium and payments of credit card bills.


The other existing requirements such as pre- and post-transaction notifications, opt-out facility for users, etc., shall continue to apply to these transactions.


The RBI Governor said the number of electronic mandates registered currently stands at 8.5 crore, processing nearly Rs 2,800 crore of transactions per month.


In order to ensure the security, integrity and privacy of financial sector data, the RBI has decided to set up a cloud facility for the sector and will be operated by Indian Financial Technology & Allied Services (IFTAS) a wholly-owned subsidiary of RBI.


“Eventually, the cloud facility will be transferred to a separate entity owned by the financial sector participants. This cloud facility is intended to be rolled out in a calibrated fashion in the medium term,” Das said.


He said banks and financial entities are maintaining an ever-increasing volume of data utilising various public and private cloud facilities.


Similarly, for better understanding of the developments in the FinTech ecosystem with an objective to appropriately support the sector, Das said it is proposed to set-up a Repository for capturing essential information about FinTechs, encompassing their activities, products, technology stack, financial information and others.


FinTechs would be encouraged to provide relevant information voluntarily to the Repository which will aid in designing appropriate policy approaches. The Repository will be operationalised by the Reserve Bank Innovation Hub in April 2024 or earlier.



Latest News
Global prevalence of gout to rise more than 70pc by 2050: Study Fri, Jul 12, 2024, 05:20 PM
Sensex closes at all-time high, tech stocks lead rally Fri, Jul 12, 2024, 05:19 PM
US: One dead, two missing after helicopter crashes into ocean in Hawaii Fri, Jul 12, 2024, 05:16 PM
June 25 to be celebrated as 'Samvidhaan Hatya Diwas', every year Fri, Jul 12, 2024, 05:14 PM
Held discussions with legal experts on release of Cauvery water to Tamil Nadu: K'taka Deputy CM Fri, Jul 12, 2024, 05:13 PM
Death toll in Indonesia's gold mine landslide rises to 26 Fri, Jul 12, 2024, 04:54 PM
UP to export 40 tonnes of mangoes to Japan & Malaysia in 2024: CM Yogi Fri, Jul 12, 2024, 04:52 PM
Maha: CAG raises alarm over rising fiscal stress due to mismatch between receipts & expenditure Fri, Jul 12, 2024, 04:32 PM
Kumaraswamy asks NMDC to commit to production target of 100 million tonnes Fri, Jul 12, 2024, 04:30 PM
SC/ST welfare funds diverted for party's poll promises, Union Minister slams Ktaka govt Fri, Jul 12, 2024, 04:28 PM
South Korea vows to strengthen solidarity with France Fri, Jul 12, 2024, 04:10 PM
Nothing sells 1 lakh units of India-made CMF Phone 1 in 3 hours Fri, Jul 12, 2024, 04:04 PM
India equity capital markets raise $29.5 bn in 2024 1st half, M&A activity hits $37.3 bn Fri, Jul 12, 2024, 04:00 PM
Foreign Ministers from Bay of Bengal countries call on PM Modi Fri, Jul 12, 2024, 03:45 PM
Gambhir approaches BCCI for Morkel's appointment as bowling coach: Report Fri, Jul 12, 2024, 03:38 PM