RBI Doubles UPI 123Pay Limit: Key Updates You Need to Know

On October 9, 2024, the Reserve Bank of India (RBI) raised the transaction limit for UPI 123Pay from ₹5,000 to ₹10,000. The NPCI (National Payments Corporation of India) followed up with a directive for banks and service providers to implement this change.

What is UPI 123Pay?

UPI 123Pay allows users to make digital payments through feature phones, even without an internet connection. It supports methods like IVR (Interactive Voice Response) numbers, missed calls, OEM-embedded apps, and sound-based technology.

Changes Coming by January 1, 2025

The updated transaction limits are effective immediately, but the NPCI has given banks and service providers until January 1, 2025, to fully implement the necessary changes. The transaction limit for UPI 123Pay will officially rise from ₹5,000 to ₹10,000. Additionally, users will now need to use Aadhaar OTP for onboarding UPI 123Pay transactions. A new purpose code (86) must be included in all UPI 123Pay transactions, while the old code (31) will no longer be valid. Service providers must also integrate with the UPI numeric ID mapper to enable UPI numbers for transactions.

UPI Lite Wallet Updates

Along with UPI 123Pay changes, the RBI also raised limits for UPI Lite wallets. The wallet balance limit is increased from ₹2,000 to ₹5,000, and the per-transaction limit is raised from ₹500 to ₹1,000.

Why These Changes Matter

RBI Governor Shaktikanta Das emphasised UPI’s significant role in making digital payments more inclusive and accessible. These updates aim to drive further innovation and encourage more people to use UPI-based services.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.