RBI Raises UPI Lite Wallet Limit To Rs 5,000

The Reserve Bank of India (RBI) has increased the wallet limit for UPI Lite from ₹2,000 to ₹5,000. The new guidelines, announced on Wednesday, also raised the upper transaction limit under the offline framework from ₹500 to ₹1,000 per transaction.

According to the RBI’s circular, the revised limits are effective immediately, enabling users to make higher-value transactions conveniently while maintaining the simplicity and security of UPI Lite. “The enhanced limits for UPI Lite shall be ₹1,000 per transaction, with ₹5,000 being the total limit at any point in time,” the circular said.

Previously, the offline framework permitted a maximum of ₹500 per transaction and a total limit of ₹2,000 for payment instruments. The updated framework is expected to streamline digital payments for day-to-day purchases and provide a more robust and inclusive digital payment experience for consumers.

The RBI clarified that the changes have been implemented under the authority of Section 18, read with Section 10(2) of the Payment and Settlement Systems Act, 2007. This initiative aligns with the central bank’s ongoing efforts to promote digital transactions while ensuring ease of use and enhanced security for consumers.

Earlier, in October 2024, RBI Governor Shaktikanta Das had announced an increase in transaction limits for UPI services during the monetary policy briefing, emphasizing the growing importance of digital payment platforms in India’s economy.

The updated limits come at a time when Unified Payments Interface (UPI) continues to set milestones in the digital payment space. In October 2024, UPI achieved a record-breaking 16.58 billion financial transactions in a single month.

Since its launch in 2016 by the National Payments Corporation of India (NPCI), UPI has revolutionized the country’s payment system, integrating multiple bank accounts into a single mobile application for seamless fund transfers, peer-to-peer transactions, and merchant payments.