UPI transaction limit raised from ₹1lakh to ₹5lakh
The new policy increases the transaction limit to 5 lakh for tax payments, healthcare, education, IPOs, and RBI retail direct schemes.
For several payment types, the Unified Payments Interface, UPI transaction limit has been raised to ₹ 5 lakh by the National Payments Corporation of India (NPCI). Users who carry out high-value transactions through UPI should expect increased flexibility and convenience as a result of this move, which takes effect on September 16.
The usual UPI transaction limit has been ₹ 1 lakh, with some categories (capital markets, collections, insurance, and foreign inward remittances) having a little higher maximum of ₹ 2 lakh. According to an NPCI circular dated August 24, the new policy will raise this limit to 5 lakh for transactions involving tax payments, payments to healthcare providers and educational institutions, and investments in initial public offerings (IPOs) and RBI retail direct schemes.
UPI Transaction Limit: Requirements for Implementation
The NPCI circular states that the following requirements must be satisfied “to enable this enhancement”:
The annexure specifies how banks, payment service providers (PSPs), and UPI apps must adjust the per-transaction limit for the various verified merchant categories.
Purchasing companies must make sure that merchants with a ‘MCC-9311’ classification are the only ones processing tax payments. Their inclusion on the ‘Verified Merchant’ list can only come about through extensive due research.
In order to pay taxes, merchants are required to accept UPI as a form of payment for transactions up to the new limit.
The initiative taken by the NPCI to raise the UPI transaction limit is a result of the payment method’s increasing acceptance in India. The organization has issued a call to action for all parties involved in the payments ecosystem, such as banks, payment service providers, and developers of UPI apps, to make sure that their systems are upgraded to reflect the new transaction limitations.
This improvement should make high-value transactions easier and give users who are involved in significant financial activity more options. To guarantee smooth transactions under the new limit, customers should check with their banks and UPI service providers to see if the increased limit applies to their specific transactions.
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