Lok Sabha Question No. 2620 (UNSTARRED), answered on 2026-03-09
Subject: Enhancement of UPI Limits
Ministry: FINANCE
Asked by: Shri Mukeshkumar Chandrakaant Dalal

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 2620

ANSWERED ON MONDAY, 9 MARCH, 2026/PHALGUNA 18, 1947 (SAKA)

## Enhancement of UPI Limits

## 2620. SHRI MUKESHKUMAR CHANDRAKAANT DALAL:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Reserve Bank of India (RBI) has announced significant enhancements to the Unified Payments Interface (UPI) transaction limits in its December 2025 Monetary Policy statement, if so, the details thereof;
- (b) the  details  of  the  decision  to  hike  the  transaction  limit  for  payments  to  hospitals  and educational institutions from Rs. 1 Lakh to Rs. 5 lakhs per transaction;
- (c) whether the limit for e-mandates on recurring payments for mutual fund subscriptions and insurance premiums without Additional Factor Authentication (AFA) has been raised to Rs. 1 Lakh, if so, the rationale for this relaxation;
- (d) the  safeguards  introduced  to  prevent  unauthorized  high-value  transactions  given  the relaxation of OTP requirements for recurring debits; and
- (e) the manner in which these measures promote the 'Digital India' vision by facilitating highvalue transactions in critical sectors like healthcare and financial savings?

## Answer

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b) Reserve Bank of India (RBI) has informed that there was no announcement with regard to enhancements of transaction limit of Unified Payments Interface (UPI) in the Monetary Policy statement of December 2025. However, in line with the Monetary Policy statement of December 2023,  National  Payments  Corporation  of  India  (NPCI)  vide  circular  dated  24.08.2024  had enhanced the limit for payment to hospital and educational institution from Rs ₹ 1 lakh to ₹ 5 lakh per transaction to encourage the use of UPI for medical and educational services.

(c) &  (d) The  limit for e-mandates  for  recurring payments  without  Additional  Factor Authentication (AFA/OTP) was increased from ₹15,000 to ₹1 lakh per transaction in respect of mutual  fund  subscriptions  and  insurance  premiums.  Further,  In  these  categories,  the  average transaction  size  was  more  than  ₹15,000  which  created  certain  friction  in  undertaking  these transactions and resulted in customers not creating mandates for such transactions. Therefore, there was a need to enhance the transaction limit for select categories.

Despite  the  relaxation  of  Additional  Factor  of  Authentication  (AFA)  for  certain  recurring payments up to ₹1 lakh, the Reserve Bank of India has implemented several safeguards to ensure the security of such transactions. These include:

- Pre-debit notification: Banks must send a notification to the customer at least 24 hours before the debit, giving the customer the option to cancel or modify the mandate.
- Device binding: Additional security is ensured through device-level binding, which helps prevent unauthorized use.
- Verified  merchants:  The  higher  limits  apply  only  to  verified  merchants  in  designated sectors such as hospitals, educational institutions, and other permitted categories.

(e) RBI and NPCI have been taking up several measures to promote the 'Digital India' vision, such as enabling high-value digital payments in key sectors. By raising the cap to ₹5 lakh for critical sectors,  UPI  transitions  from  a  retail-only  tool  to  a  comprehensive,  high-value  payment infrastructure that facilitates  instant,  seamless  payments  for  large medical  or  educational  bills, reducing the need for cash or physical payment methods. It also encourages a shift towards digital modes for regular, large-value investments (Mutual Funds/Insuranc e).

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