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    Question

    What is the enhanced transaction limit for payments made

    through UPI under the Retail Direct Scheme and for IPO applications, as per RBI’s latest update?
    A ₹50,000 Correct Answer Incorrect Answer
    B ₹1 lakh Correct Answer Incorrect Answer
    C ₹2 lakh Correct Answer Incorrect Answer
    D ₹3.5 lakh Correct Answer Incorrect Answer
    E ₹5 lakh Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) has progressively increased the transaction limits on UPI to encourage wider adoption in retail investment avenues: • Initially, the limit for UPI transactions was ₹1 lakh. • In March 2020, this was raised to ₹2 lakh. • With the growing use of UPI for Initial Public Offerings (IPOs) and under the Retail Direct Scheme (launched to enable retail investors’ participation in G-secs), RBI further increased the limit to ₹5 lakh. This higher threshold accommodates larger applications in IPOs and government securities markets, supporting greater participation from retail investors.

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