In a significant move, the government has announced a relaxation in OTP requirements for UPI payments up to Rs 1,00,000.
Users can now make auto-debit UPI payments in this category without the need for OTP authentication, providing a smoother transaction experience.
RBI Approves Increase in UPI Auto Debit Limit
The Reserve Bank of India (RBI) has approved a proposal to raise the limit for UPI auto debit payments.
This adjustment eliminates the Additional Factor Authentication (AFA) requirement for transactions up to Rs 1 lakh,
specifically for mutual fund subscriptions, insurance premium payments, and credit card repayments.
Discounts on UPI Autodebit Transactions
With the latest changes, UPI auto-debit transactions now enjoy a discount, as the need for Additional Factor Authentication (AFA) is lifted for payments up to Rs 1,00,000. This alteration simplifies the process for mutual fund subscriptions, insurance premiums, and credit card repayments.
Benefits of UPI Auto Payment Setup
Setting up UPI auto payment offers several advantages:
- Avoid late fees and penalties with timely auto-debit transactions.
- Choose auto-debit frequency according to your preference, be it monthly, quarterly, and more.
Transaction Limit Raised for UPI Payments
The recent RBI meeting brought noteworthy changes to UPI payments.
The transaction limit for Unified Payment Interface (UPI) payments has been increased from Rs 1 lakh to Rs 5 lakh.
This adjustment is applicable to payments made to hospitals and educational institutes, offering enhanced financial flexibility.
RBI maintains Interest Rates despite Monetary Policy Update
During the announcement of the monetary policy update, the RBI decided to maintain the interest rates at 6.50%. This decision was reached after unanimous agreement among all members, emphasizing stability in the current economic scenario.
