RBI enhances transaction limits on UPI 123 and UPI Lite

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About Unified Payment Interface (UPI)

UPI Instant payment system developed by the NPCI, It is built over the IMPS infrastructure
The different channels for transferring funds using UPI are:
- Send/Collect through Virtual ID
- Account Number + IFSC
- Aadhaar Number
Single mobile application for accessing different bank accounts.
Transactions are carried out through mobile devices with two-factor authentication using device binding and a UPI PIN as security.

Did You Know

RBI has recently introduced ‘Delegated Payments’ through UPI.
This will enable a secondary user, like a spouse, to make payments via UPI by using the bank account of the primary user.
It would enable a UPI user to set a payment limit for another user on their bank account.
This product is expected to add to the reach of digital payments.

Developed by: National PaymentsCorporation of India (NPCI)
Works on both feature phones and Smartphones (without Internet).
Transaction Methods:
- IVR (Interactive Voice Response): Users can call a predefined number and follow voice prompts to complete transactions.
- Missed Call Approach: Users give a missed call and receive a callback to authenticate the transaction using a UPI PIN.
- App-based Functionality: A simplified UPI app for feature phones offering basic payment functions.
- Proximity Sound-based Payments: Users tap their phone on a merchant device, utilising sound waves for contactless payments.
Transaction Limit: Increased from ₹5,000 to ₹10,000 per transaction to enhance usability.

It is designed for small-value transactions.
It enables quick payments (no need to connect to a bank server for each transaction).
Wallet Limits: The wallet limit has been raised from ₹2,000 to ₹5,000, with a per-transaction limit of ₹1,000 (previously 500).