RBI Monetary Policy December 2021: RBI on Wednesday kept repo rate and reverse repo rate unchanged at 4 per cent and 3.35 per cent, respectively. Also, it maintained its accommodative stance to ensure better economic recovery. 

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RBI Governor Shaktikanta Das while addressing on review by Monetary Policy Committee, made an important announcement on "Increase in UPI Transaction Limit for Specified Categories."

Rs 2 lakh to Rs 5 lakh: UPI limit for Retail Direct Scheme and IPO

"To further encourage the use of UPI by retail investors, it is proposed to enhance the transaction limit for payments through UPI for Retail Direct Scheme and IPO applications from Rs 2 lakh to Rs 5 lakh. Separate instructions to NPCI will be issued shortly," RBI statement on Statement on Developmental and Regulatory Policies said. 

According to RBI statement, "Reserve Bank has been making efforts to facilitate greater participation of retail customers in financial markets, e.g. investment in the G-secs segment through the recent launch of Retail Direct Scheme, where UPI, in addition to other options such as internet banking, can be used to make payments for participating in both the primary and secondary markets."

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"Over time, UPI has also become a popular payment option for Initial Public Offerings (IPOs) since its availability from January 01, 20194. It is reported that IPO applications of Rs 2 to Rs 5 lakh constitute approximately 10 per cent of subscription applications. The transaction limit in the UPI system was enhanced from Rs 1 lakh to Rs 2 lakh in March 2020."