RBI hikes UPI limit for hospital, educational payments

Current Context: The RBI announced an increase in UPI payment limits for hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction during the bi-monthly Monetary Policy Committee (MPC) meeting on December 8, 2023.

• The move is expected to benefit hospitals and patients alike, as it will enable faster and smoother transactions for medical expenses and education fees.
• The UPI transaction limit for normal payments is up to Rs 1 lakh per transaction.
• For some specific categories of transactions in UPI, like capital markets, collections, insurance, and foreign inward remittances, the transaction limit is up to 2 lakh.
• The RBI said that these measures are aimed at enhancing customer convenience, promoting digital payments, and supporting financial inclusion.

Question:

Q.1 What is the new UPI payment limit for hospitals and educational institutions announced by the RBI?
a. Rs 50,000
b. Rs 1 lakh
c. Rs 5 lakh
d. Rs 10 lakh