To avoid wrongful credits and fraud, the Reserve Bank of India (RBI) will now allow the account holder to make a transfer to a beneficiary to verify the latter’s account in NEFT and RTGS transactions, like the UPI and IMPS, RBI Governor Shaktikanta Das said on Wednesday (October 9, 2024).

He made the announcement during the Monetary Policy Committee (MPC) on Wednesday.

The RBI on Wednesday also increased the UPI Lite wallet limit to ₹5,000 from ₹2,000 at present. In July 2023, the RBI announced that users can create their UPI LITE wallets within the app and maintain a balance of up to ₹2,000, which can be loaded up to twice in a day. The LITE account can be used to make transactions of up to Rs. 200.

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There are different payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) system, Real Time Gross Settlement (RTGS) system and Unified Payments Interface (UPI) and various payment instruments like debit cards, credit cards and Prepaid Payment Instruments.

UPI is a payment system that allows money transfers between any two bank accounts by using a smartphone. The UPI was launched in 2016 and is operated by the National Payments Corporation of India (NPCI).