It enables the user to pay different merchants from one mobile application and supports multiple bank accounts. The application was first launched on 11th April 2016 by Dr. Raghuram Rajan, the ex-honorable governor of RBI.

How Much Money Can You Transfer via UPI, and What is the General Limit?

Ideally, the limit on UPI transactions is Rs 1 lakh which can be made in 20 transactions per day. The maximum payment we can make through UPI varies from bank to bank, and the table below mentions it.

UPI Partner Bank-Wise Limits

We have mentioned the top 15 banks to understand the per day and transaction limit.

UPI AutoPay

UPI AutoPay is a unique feature that enables one to make recurring payments like subscriptions or electricity bills below the limit of Rs 5,000/-. This feature automatically deducts the amount every month without the requirement of UPI Pin for such transactions.

Pay Limit of BHIM App

The daily limit for BHIM app transactions is Rs 40,000/- in a single payment in a single day.

New Rules Regarding UPI Fund Transfer

The UPI transactions are free of charge for all users. After demonetization, UPI transactions increased by double. With increasing digitization, people started preferring UPI transactions over carrying cash.

Conclusion

Making payments through UPI comes with restrictions on daily limits. This makes individuals wait for the next day to perform transactions. They can use other payment mediums. The NPCI has not yet increased the transaction limit, and the bank cannot increase the transaction limit, even after requesting.

With more UPI transactions, there is a possibility that the NPCI will consider increasing the transaction limits and transaction amount in the upcoming days. NPCI has allowed banks to set their transactions limit. The limit cannot cross the 1,00,000/- limit cap set by the NPCI.

The post UPI Transaction Limit 2022 in a nutshell! appeared first on PayU Blog.

While India is on the path to recovery, here is a glimpse of how the latest monetary policy will impact the payments industry and its consumers:

Limit On Subscription Transactions Increased

To boost and simplify recurring payment transactions, the limit for e-mandates on cards (credit & debit) and UPI has been lifted from INR 5,000 to INR 15,000. This leads to a simpler and faster recurring payment experience for customers. Not just this, increasing the limit on such transactions will also give a boost to subscription-based businesses. It will also automate recurring payments for a higher value and be used for more businesses, viz-a-viz insurance companies, edtech companies, etc. This allows subscription businesses to experiment and build on their existing subscription plans and ensure maximized revenue.

UPI Payments Via Rupay Credit Cards Will Be Allowed

With UPI becoming increasingly inclusive and one of the most preferred payment methods in India, RBI has announced that UPI payments will be allowed via Rupay credit cards. All you need to do is add your Rupay credit card to the UPI app you use and start paying directly from credit cards on your UPI apps. With this, the system of credit becomes more fluid for consumers. On the one hand, UPI is one of the most commonly used payment modes; on the other hand, credit cards are also becoming indispensable. For the payments industry, this means more merchants being open to accepting credit cards which will enhance the usage of cards and boost UPI and card infrastructure in India. Also, this reduces costs for merchants as they don’t need POS machines to accept payments via RuPay credit cards. Additionally, this ensures all benefits of credit cards without any setup cost except standard MDR, which is chargeable.

This is the latest RBI policy announced by Das in June, which impacts the payments industry and its consumers significantly. What comes next is the only time, and the following policy meeting will tell. Till then, stay tuned!

Frequently Asked Questions

The post How Does Latest RBI Monetary Policy Affect Payments Industry? appeared first on PayU Blog.

The Reserve Bank of India (RBI) recently announced new guidelines for subscription payments. Now you must be thinking, what do these guidelines mean for your business? Don’t worry! We have prepared a simplified guide for you below: 

What are the Latest Auto-Debit Guidelines? 

With effect from October 1, 2021, businesses need to comply with new norms to continue auto-debiting the subscription amount on credit & debit cards. As per the latest guidelines, Additional Factor Authentication (AFA) or an OTP approval from customers is necessary to resume the auto-debit functionality. All businesses will have to intimate customers up to 24 hrs before any auto-debit transaction up to ₹ 5,000. Also, businesses need to provide customers with an ‘Opt-out’ link with the auto-debit notification. 

While it is a disruption in the short term, the new norms will ensure a convenient, secure and, safer recurring payments ecosystem for all. They give the customer more control over transactions and allow them to manage their subscriptions easily from the bank portal itself. 

How will the New Guidelines Impact Your Business? 

All subscription-based businesses, from the biggest OTTs to upcoming subscription box companies, are under the purview of these new regulations. However, entities conducting transactions such as Mutual Funds (SIP), EMIs, or loans based on UPI and Netbanking remain unaffected by the new norms.   

Commenting on the future of India’s subscription economy, Nimit Bhatia, Associate Director – Products at PayU said “In the longer term, it’ll result in more customers being comfortable using card payments. These regulations will give end customers the comfort that translates into more business growth over time. Short term pain but overall subscriptions or cards business will grow in the upcoming quarters.” 

To know more, click the link below:

Do Businesses Need to Worry? Definitely Not with PayU 

If you are worried about ensuring the latest norms, PayU is here to help you through it. With PayU’s Recurring Payment Suite, businesses can become compliant with the new guidelines.  

Our Recurring Payment Suite will enable you to maximize the revenue potential of your business in the following way: 

1. PayU has its proprietary solution, Zion Hub covering all payment modes. It manages the subscriptions on your behalf and offers a faster go-live.   

Final thoughts 

While new norms may have influenced businesses in the short term, they are a very big step forward in improving the payments ecosystem of India. They give more control to consumers and will improve the way digital transactions are done.  

The post Decoding & Implementing New Auto-Debit Rules: A Quick Guide for Businesses appeared first on PayU Blog.