The Reserve Bank of India (RBI) has announced an increase of 50 basis points in the repo rate. However, along with this, the central bank has proposed UPI payment by credit card (Credit Card Link UPI Platform) and has also increased the OTP transaction limit (OTP ATM Transaction Limit) by 10 thousand rupees more. That is, now people will not have to take OTP approval for withdrawing 15 thousand rupees. Earlier this limit was only 5000 rupees.
The linking of credit cards with the UPI platform will be started with the Rupay card. Currently UPI provides the facility of transactions by linking savings or current accounts through debit cards of users, but after this announcement by RBI, now the credit card will be linked to UPI and after it is linked, you can use the credit card. You will be able to make UPI payments while doing it.
594.63 crore transactions through UPI
Das said the new arrangement is expected to provide more opportunities and convenience to customers to make payments through the UPI platform. He said that UPI has become the most common mode of payment in India, with more than 26 crore users and 50 million merchants taking advantage of it. Das said that in May, 594.63 crore transactions worth Rs 10.40 lakh crore were done through UPI.
Auto-debit mandate limit
The Reserve Bank of India (RBI) on Wednesday increased the limit of auto-debit mandate from Rs 5,000 to Rs 15,000 on recurring payments made through cards and UPI (Unified Payment Interface). That is, now customers will have to approve the transaction with the OTP sent from the bank only for payments above Rs 15,000.
Instructions were issued on October 1
The central bank’s guidelines have made Additional Authentication (AFA) mandatory for customers on all recurring payments made through credit cards, debit cards and UPI with effect from October 1. Under this, a limit of Rs 5,000 was kept, which has now been increased to Rs 15,000. That is, one-time password (OTP) approval will have to be taken for transactions of more than 15,000.
Significantly, the RBI has increased the prime lending rate by 50 basis points to 4.90%. Retail inflation rose to 7.79% in April from a year ago. Global prices of crude oil, food and other commodities increased further. At the same time, the central bank kept GDP growth at 7.2% for the financial year 2023.