Major changes in UPI usage limits

Let's start this article by wishing you two things - one , that your bank account maintains a balance of more than five lakh rupees and two , that you don't have to pay that amount to the hospital! The reason for such a greeting is a major change in the Unified Payments Interface (UPI).

According to this change, now if we want to pay hospital bills or school-college fees through UPI, the limit for that is Rs. One lakh increased to Rs. It has been done up to five lakhs. It means that in our UPI connected bank account Rs. If the amount is up to five lakhs , we will be able to pay this amount in a few clicks .

Along with this, there is another big change related to UPI. If you use UPI a lot, this change is more important to know. But before that , let's talk about how many flavors of UPI have come , like ice cream !

One is the simple UPI system. In which , we have to provide UPI PIN while making UPI payments for small and large amount payments on a daily basis. That way the amount is transferred directly from our bank account.

Another flavor is ' UPI Lite ', activated in our permanent UPI app , in this kind of ' mobile wallet ' we have Rs. We can keep the amount up to 2000. After that Rs. We don't need to provide OTP for transactions below 500.

The third variant is ' UPI Lite X '. With its help we can make payments in offline mode as well (although for that the phone needs to have ' Near Field Communication (NFC) ' feature.

All these features are useful for our day-to-day , relatively small payments. Apart from this, we can also use UPI for mutual fund subscription , insurance premium subscription and credit card repayments.

For this, UPI's ' Auto Payment ' feature can be used. At present, when payment of more than Rs.15000 is being made for this type of payments, we have to verify that we are making the payment ourselves with one time password.

Now the Reserve Bank of India has increased this limit significantly. According to the new limit, such payments up to one lakh rupees can be made through OTP without additional authentication.

There is a reason for such generosity. The use of UPI for day-to-day payments of small and large amounts is growing tremendously , but the use of UPI for payments for mutual funds , insurance and credit cards has been relatively limited. Currently, about 8.5 crore people are using e-mandates for auto payment in the country. The UPI system can thus save around Rs. 2800 crores in transactions. These figures are very less when compared to the total number of users of UPI and the total number of transactions made using it.

Therefore, to increase the use of UPI in the auto payments category as well, the transaction limit without OTP has been directly increased to one lakh. The auto payment mechanism through UPI is similar to the Bank's Electronic Clearing Service (ECS). The advantage is that once we set up the mandate, the fixed amount is paid automatically from our bank account and we don't have to bear any late fees or penalties.