The Reserve Bank of India (RBI) is planning to make it easier for people to pay for things like mutual fund investments, insurance premiums, and credit card bills using UPI. Now, for these UPI payments up to Rs 1 lakh, you won’t need to go through the extra step of adding an additional security measure like an OTP (One-Time Password).
This is good news for people who regularly make these kinds of payments. It means that the payments can happen automatically every month without needing to enter an OTP. Earlier, the RBI had a limit of Rs 15,000 for these kinds of transactions without extra security, but eventually they’ve raised it to Rs 1 lakh because many people pay more than Rs 15,000 for their mutual funds, insurance, and credit card bills.
Adhil Shetty, the CEO of Bankbazaar, says this change will help make these transactions smoother and more convenient for users. The RBI’s new rule is all about making online payments easier while still keeping them safe and secure.
You’ll still get notifications before and after your transaction, and you can choose not to participate in this automatic payment setup if you want. The RBI will share more details about this change soon.
They introduced this system in 2019 to make digital payments safe but easy. Until now, the limit for these automatic payments without an extra security check was Rs 15,000, but it’s going up because people need higher limits for their fund investments, insurance, and credit card payments. Currently, there are about 8.5 crore e-mandates, processing nearly Rs 2800 crore of transactions every month. The RBI noticed that people were hesitant to use automatic payments for larger amounts, so they decided to increase the limit.