September 17, 2024
New Delhi, India
Starting Monday, September 16, the National Payments Corporation of India (NPCI) has raised the Unified Payments Interface (UPI) transaction limit to ₹5 lakh for select services. The standard UPI limit remains ₹1 lakh per transaction, while the limit for capital markets, insurance, collections, and foreign remittances stands at ₹2 lakh.
Which Services Are Eligible for the ₹5 Lakh UPI Limit?
The following services will now have a per-transaction UPI limit of ₹5 lakh:
- Tax Payments
- Payments to Hospitals
- Payments to Educational Institutions
- IPO Applications
- RBI Retail Direct Scheme Investments
The higher limit aims to enhance convenience for users making large payments in these specific categories.
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Why Was the UPI Limit Increased?
According to a circular issued by NPCI on August 24, 2024, the decision to increase the UPI transaction limit was made to accommodate the growing demand for UPI payments in high-value transactions. The NPCI stated, “With UPI emerging as a preferred payment method, there is a need to enhance the per-transaction limit for specific categories.”
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Compliance and Implementation
All banks, UPI apps, and payment service providers (PSPs) are required to update their systems to reflect the new transaction limit by Sunday, September 15, 2024. Merchants accepting payments under these categories must also be verified to handle transactions with the higher limit.
While the new limit offers more flexibility, individual banks may still set their own daily UPI transaction limits. It’s advisable to check with your bank or UPI app to confirm whether the increased limit applies.
The increased UPI transaction limit is expected to facilitate smoother and more efficient high-value payments in sectors like healthcare, education, and financial markets.
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