Reserve Bank of India (RBI) in its Monetary Policy Committee (MPC) meeting has increased the per-transaction limit in UPI 123Pay from Rs 5,000 to Rs 10,000. RBI Governor Shaktikanta Das announced the decision in Monetary Policy statement.

Notably, UPI 123Pay is a suite of solutions developed for Non Smartphone or feature phone users to use the UPI without internet connectivity. RBI Governor also announced an increase in the UPI Lite wallet limit from Rs 2,000 to Rs 5,000. UPI Lite per-transaction limit is also increased from Rs 500 to Rs 1,000. UPI LITE is a payment solution that allow users to process low value transactions.

Also Read: RBI MPC Meeting: GDP Projection To Interest Rates – What Are The Key Takeaways?

RBI MPC Meeting

The Central bank held its 51st Monetary Policy Committee (MPC) meeting on 7, 8 and 9 October. Notably, this was the first RBI MPC meeting after three new external members appointed by the government on the panel last week. The major decision of the MPC was to keep the Repo Rate unchanged at 6.5%. This is the tenth straight time when the key rate has been kept unchanged. 

The standing deposit facility (SDF) rate remains at 6.25%. The marginal standing facility (MSF) rate and the Bank Rate kept unchanged at 6.75%.

Meanwhile, the central bank has changed its monetary policy stance of ‘withdrawal of accommodation’ to ‘neutral’. In MPC meeting the central bank projected real GDP to grow at 7.2% rate in FY 2024-25. Consumer Price Index aka Retail inflation for FY 2024-25 is projected at 4.5%.

Other than this RBI Governor said, “Banks and NBFCs are not permitted to levy foreclosure charges/ pre-payment penalties on any floating rate term loan sanctioned to individual borrowers for purposes, other than business.”

Also Read: RBI MPC: What Is Monetary Policy And How Repo Rate Impacts Common People?