CHENNAI : The Reserve Bank of India (RBI) increased the UPI transaction limit for hospital and educational services to Rs 5 lakh from Rs 1 lakh at present.
After the monetary policy committee (MPC) meeting on Friday, RBI has exempted additional factor of authentication for e-mandates transactions till `1 lakh for payments related to mutual funds, insurance premium, credit card bills. RBI noted that in these categories transaction sizes are more than Rs 15,000, increase in limit will improve adoption.
Generally e-mandates for recurring transactions exceeding Rs 15,000 require additional factor of authentication. The other existing requirements such as transaction notifications, opt-out facility will continue.
RBI Governor Shaktikanta Das laid out various regulatory policy measures in progress for fintech, web-aggregation of loans, and connected lending. The Reserve Bank announced its decision to set-up a fintech repository for capturing essential information about fintechs like products, technology stack, and financial information. Fintech players have to provide information voluntarily, which will be used for designing policies. The repository will be operationalised by the Reserve Bank Innovation Hub by April next year.
This comes amid concerns of increasing partnerships between financial entities like banks and NBFCs with fintechs and increasing small-ticket unsecured loans. RBI has announced loan aggregation services offered by the Lending Service Providers (LSPs) be brought under a comprehensive regulatory framework. The framework will focus on enhancing the transparency in operation of web-aggregators of loan products and enable the borrowers to make informed choices.
Responding to a question on unsecured loans, Das said, “Part of our supervision and proactive monitoring of the financial sector and individual institutions, our endeavor is to remain up to date and also to use or try to use the smell test.” “Whenever we smell any stress building up anywhere, at the system level or at individual entity level, we deal with it (at an) appropriate level,” he said.