RBI MPC Meeting: Central Bank Pushes For Wider UPI Adoption, Raises UPI Lite Wallet Limit To Rs 10,000

To make the payment system more inclusive, Das said that the committee has decided to increase the per transaction limit in UPI 123Pay from Rs 5,000 to Rs 10,000

RBI October 2024 MPC Meeting: The Reserve Bank of India’s Monetary Policy Committee decided to maintain the status quo on key rates for the tenth consecutive time on Wednesday. Sharing the details of the meeting, Chairperson Governor Shaktikanta Das in his address said that the repo rate remains unchanged at 6.5 per cent.

Further, the Governor revealed that the committee has also decided to adopt several measures to promote the use of UPI in the public. To make the payment system more inclusive, Das said that the committee has decided to increase the per transaction limit in UPI 123Pay from Rs 5,000 to Rs 10,000. Further, the wallet limit for UPI Lite was also enhanced from Rs 2,000 to Rs 5,000. 

“UPI has transformed India's financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation,” he stated.

Indian Economy

Talking about the condition of the Indian economy, Das noted that the share of investment in the GDP reached its peak level since 2012-13. He observed that government expenditure declined during the first quarter of the current fiscal year.

He further stated that the central bank is keeping a tab on incoming data related to credit cards, MFI loans, and unsecured loans. He pointed out concerns that the banks and NBFCs in the country need to focus on inoperative accounts, mule accounts, and strengthen their cybersecurity measures.

The Governor observed that while the NBFCs have seen impressive growth in the recent years, some of them are aggressively expanding without strengthening their underwriting practices. He said that while self-correction by the entities is the desired option, however, the central bank will not hesitate to take action if needed. 

The committee voted in favour of maintaining the status quo on rates in a 5:1 majority and also kept the marginal standing facility and standard deposit facility ranges unchanged.