The previous limit was Rs. 1 lakh.
RBI Governor Shaktikanta Das said as quoted by Mint, "The limit for various categories of UPI transactions has been reviewed from time to time. It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from ₹1 lakh to ₹5 lakh per transaction.
"This will help the consumers to make UPI payments of higher amounts for education and healthcare purposes."
Moreover, Das announced the enhancement of the limit in e-mandates for payments of recurring nature to Rs. 1 lakh. The limit has been enhanced for mutual funds subscriptions, insurance premium subscriptions and credit card repayments, the report says.
Repo Rate unchanged
As widely expected by markets and policy-watchers, the RBI Monetary Policy Committee (MPC) on Friday decided to keep the policy repo rate unchanged at 6.50%.
With the central bank maintaining the status quo on key lending rates, EMIs for housing, cars, businesses, and other loans would not rise.
"After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the Monetary Policy Committee (MPC) decided unanimously to keep the policy repo rate unchanged at 6.5%.
"Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the bank rate are at 6.75%," said the RBI Governor while making the bi-monthly Monetary Policy statement.