New Delhi: The National Payments Corporation of India (NPCI) has announced a significant increase in the transaction limit for Unified Payments Interface (UPI) to ₹ 5 lakh, starting September 16. This update will benefit users making high-value transactions in specific categories such as tax payments, payments to hospitals, educational institutions, Initial Public Offerings (IPOs), and RBI retail direct schemes.Detailed limit enhancementPreviously, the UPI transaction limit stood at ₹ 1 lakh, with a slightly higher limit of ₹ 2 lakh for certain sectors including capital markets, insurance, collections, and foreign inward remittances. However, a recent NPCI circular, dated August 24, detailed this limit enhancement to ₹ 5 lakh for the aforementioned payments. The move is aimed at offering greater flexibility and convenience for users.To implement this increase, NPCI has set specific guidelines. Banks, payment service providers (PSPs), and UPI apps are required to update their per-transaction limits for verified merchants, as outlined in the NPCIs annexure. For instance, merchants classified under MCC-9311 will be responsible for handling tax payments, and they must be added to the Verified Merchant list following strict due diligence procedures.Seamless high-value transactionsIn its circular, NPCI emphasized the rising popularity of UPI in India, noting that the platform has become a preferred payment method for millions. With UPI emerging as a preferred payment method, there is a need to enhance the per-transaction limit in UPI for specific categories, the organization stated.This new limit is expected to facilitate seamless high-value transactions, and users are advised to confirm with their banks or service providers regarding the applicability of this enhancement to their specific needs.
