New Delhi, Dec 9 (KNN) The Reserve Bank of India (RBI) has announced a substantial increase in the Unified Payments Interface (UPI) transaction limit for hospitals and educational institutions.

The new limit, effective immediately, stands at Rs 5 lakh, a significant jump from the previous limit of Rs 1 lakh. 

As per reports, this change will enable users to conveniently make larger payments for healthcare and education expenses through the widely used UPI platform.

The RBI Governor, Shaktikanta Das, also announced an increase in the cap for e-mandates used for recurring payments. 

This limit has been raised from the existing Rs 15,000 to Rs 1 lakh, applicable for transactions like mutual fund subscriptions, insurance premium payments, and credit card repayments. 

This move aims to further encourage the use of e-mandates and simplify recurring payments for customers.

In addition to these changes, the RBI has also announced the upcoming establishment of a "Fintech Repository" in April 2024. 

This initiative, managed by the Reserve Bank Innovation Hub, will function as a central repository of information about developments within the fintech ecosystem. It aims to improve understanding and support for the sector while encouraging voluntary participation from fintech companies.

Furthermore, recognising the growing reliance on cloud technologies within the financial sector, the RBI announced plans to develop a dedicated cloud facility specifically for the industry. 

This initiative aims to address the increasing data volumes handled by banks and financial entities, ensuring enhanced data security, integrity, and privacy, while facilitating scalability and business continuity. The RBI plans to implement this facility in a phased manner over the medium term.

(KNN Bureau)