The Reserve Bank of India (RBI) has raised the UPI payment limit to hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh presently and hiked the cap for e-mandates for recurring payments to Rs 1 lakh.

"The limit for various categories of UPI transactions has been reviewed from time to time. It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction. This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes," RBI Governor Shaktikanta Das said while announcing the December bi-monthly monetary policy.

Further, Das announced the enhancement of the limit in e-Mandates for recurring payments for specified categories.

Limits for e-mandates for making recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments have been raised to Rs 1 lakh per transaction.

“E-mandates for making payments of a recurring nature have become popular among customers. Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000. It is now proposed to enhance this limit to Rs 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments,” Das said. 

This measure, Das added, will further accelerate the usage of e-mandates.