RBI Doubles UPI 123Pay Limit to ₹10,000 for Feature Phones
The Reserve Bank of India (RBI) has raised the transaction limit for UPI 123Pay from ₹5,000 to ₹10,000, enhancing its utility for India’s 400 million feature phone users. Launched in March 2022, UPI 123Pay enables digital transactions without internet access through IVR, missed calls, and sound-based payments. Alongside, the UPI Lite wallet limit has been increased from ₹2,000 to ₹5,000 to facilitate small-value transactions. These moves aim to deepen financial inclusion and boost the adoption of digital payments, particularly among underserved populations.
UPI 123Pay is a platform enabling feature phone users to perform UPI transactions without an internet connection. It supports various methods, including:
The UPI Lite wallet limit increase to ₹5,000 supports faster and more efficient small-value transactions by allowing users to store money directly on their devices.
In its recent review, the RBI’s Monetary Policy Committee maintained the repo rate at 6.5%, balancing inflation control and growth support. Governor Shaktikanta Das emphasized flexibility to respond to economic dynamics, with GDP growth for FY25 forecasted at 7.2% and inflation capped at 4.5%.
| Why in News | Key Points |
|---|---|
| RBI Doubles UPI 123Pay Limit | Transaction Limit: Increased from ₹5,000 to ₹10,000 for feature phone users |
| Purpose: To enhance digital payments accessibility for 400 million feature phone users | |
| Security: Aadhaar OTP authentication introduced for transactions | |
| Tracking: New purpose code (86) for standardized transaction tagging | |
| Transaction Methods: IVR, missed calls, sound-based payments | |
| Launch Details | Launch Date: March 2022 |
| Implemented By: RBI and National Payments Corporation of India (NPCI) | |
| Users: 400 million feature phone users across India | |
| UPI 123Pay Features | Methods: IVR, missed calls, sound-based payments, and app-based transactions |
| Security Feature: Aadhaar OTP for enhanced authentication | |
| UPI Lite | Limit Increased: From ₹2,000 to ₹5,000 for small-value transactions |
| RBI MPC Updates | Repo Rate: 6.5% (unchanged) |
| GDP Growth Forecast: 7.2% for FY25 | |
| Inflation Target: 4.5% for FY25 | |
| Governor: Shaktikanta Das |
Open Network for Digital Commerce (ONDC) has appointed Vibhor Jain as the Managing Director and…
Indian Army has launched the Operation HimSetu to rescue over the 1,400 stranded tourists and…
The Central Armed Police Forces (General) Administration Act, 2026 is officially notified new act after…
The Strait of Hormuz is one of the most important waterways in the world. Even…
The National Highways Authority of India (NHAI) has launched the innovative which named as the…
The Reserve Bank of India has proposed the one hour delay on UPI and bank…