The UPI system is getting a big upgrade—soon, you can make transactions in dollars. This means smooth, hassle-free global transactions in the currencies you need, as per CNBC Awaaz.
RBI and NPCI in Discussions For International UPI Payments
India’s National Payments Corporation (NPCI) and the Reserve Bank of India (RBI) are currently discussing plans with SWIFT for a significant transition. The goal is to establish UPI as the top choice for easy and secure cross-border digital transactions, as mentioned in the report.
SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a global system that helps banks transact across countries. With this connection, using UPI for international business will be easier and more straightforward.
In an important move, RBI Governor Shaktikanta Das shared key updates about UPI during the December 8 Monetary Policy Committee meeting. One significant change is that the UPI payment limit for hospitals and educational institutions has been increased from ₹1 lakh to ₹5 lakh, starting immediately.
There’s more news—now, the central bank has bumped up the limit for auto-debit, also known as e-mandate, to ₹1 lakh per transaction. This higher limit applies to various things, like buying mutual funds through SIP, making regular insurance premium payments, and handling credit card bills.
Before, for UPI auto payments over ₹15,000, you needed an OTP. Now, things are easier—no need for extra authentication (AFA) for transactions up to ₹1 lakh.
In India, UPI is a cool way to pay with your phone. You can make quick payments 24/7 using a Virtual Payment Address (VPA).
In November 2023, UPI had a whopping 11.24 billion transactions, totaling ₹17.40 trillion, according to NPCI data.
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Automatic UPI Payment Limit Increased to ₹1 Lakh
On Tuesday, the Reserve Bank of India raised the limit for automatic payments via UPI to Rs 1 lakh per transaction from the previous Rs 15,000 for specific categories, including mutual fund subscriptions.
Currently, there is a provision for relaxation in Additional Factor of Authentication (AFA) when handling e-mandates/standing instructions on cards, prepaid payment instruments, and UPI (Unified Payments Interface). This applies to subsequent recurring transactions with values up to Rs 15,000.
