RBI Boosts Digital Transactions in India
New UPI Limits Announced
The Reserve Bank of India (RBI) has announced new measures to enhance digital transactions and financial inclusion. RBI Governor Shaktikanta Das revealed these changes during a policy announcement. The transaction limit for UPI123Pay, a service for keypad mobile phones, has been increased from Rs 5,000 to Rs 10,000. UPI123Pay, launched in March 2022, allows users to make payments without internet access.
UPI Lite Wallet Enhancements
Additionally, the UPI Lite wallet limit has been raised from Rs 2,000 to Rs 5,000, with the per-transaction limit increased from Rs 500 to Rs 1,000. These changes aim to simplify low-value transactions and improve user convenience.
New Security Features for Fund Transfers
The RBI has also introduced a beneficiary account name look-up facility for RTGS and NEFT systems. This feature, already available for UPI and IMPS, allows remitters to verify the receiver’s name before completing a transaction, reducing errors and fraud risks.
These initiatives are part of the RBI’s efforts to enhance digital payment infrastructure, providing greater security and inclusivity, especially for users with basic mobile devices.
Doubts Revealed
RBI -: RBI stands for the Reserve Bank of India. It is the central bank of India, which means it manages the country’s money and financial system.
UPI -: UPI stands for Unified Payments Interface. It is a system in India that allows people to transfer money between bank accounts using their mobile phones.
Keypad Phones -: Keypad phones are basic mobile phones that have physical buttons for dialing numbers and typing messages, unlike smartphones that have touchscreens.
UPI123Pay -: UPI123Pay is a service that allows people with keypad phones to use UPI for making payments, even if they don’t have a smartphone.
RTGS -: RTGS stands for Real-Time Gross Settlement. It is a system that allows people to transfer large amounts of money from one bank to another instantly.
NEFT -: NEFT stands for National Electronic Funds Transfer. It is a system that allows people to transfer money from one bank account to another in batches, which means it might take some time.
Remitters -: Remitters are people or entities who send money to someone else. In this context, it refers to those who transfer money using digital payment systems.