UPI Transaction Limit: An important update to the Unified Payments Interface (UPI) transaction limitations has been published by the National Payments Corporation of India (NPCI). Users can now pay with UPI up to ₹5 lakh for specific kinds of transactions as of September 16. More ease and flexibility are anticipated for users handling high-value UPI transactions as a result of this modification.
What’s New with UPI Transaction Limit?
Prior to this, the average UPI transaction limit was ₹1 lakh, with a somewhat higher maximum of ₹2 lakh for remittances from overseas, capital markets, insurance, and collections. Effective from September 16, the new limitation of ₹5 lakh is applicable only to payments for education feess, hospital expenses, taxes, and investments in initial public offerings (IPOs) and RBI retail direct schemes.
Key Conditions for the Increased UPI Transaction Limit
To implement this upgrade, NPCI has outlined a few crucial conditions:
- Bank and App Updates: For the designated categories, banks, payment service providers (PSPs), and UPI apps need to modify their systems to support the increased ₹5 lakh transaction limit.
- Merchant Verification: Organisations covered by ‘MCC-9311’ that are involved in tax payments have to undergo a rigorous verification process in order to be included on the ‘Verified Merchant’ list. The new UPI payment limit is only available from these merchants after thorough investigation.
- Enabling UPI for Tax Payments: It is mandatory for merchants who handle tax payments to allow UPI as a mode of payment for transactions up to ₹5 lakh.
Why the Increase?
The NPCI’s decision is in line with the growing acceptance and confidence in UPI as India’s preferred payment mechanism. In order to better serve consumers making large payments, it is obvious that the transaction limit needs to be increased as UPI is becoming a popular option for a variety of financial activities.
Next Steps for Users
Users are advised to verify with their banks and UPI service providers as this new upgraded limitations is implemented to make sure their transactions qualify for the updated ₹5 lakh limit. The goal of this modification is to improve the efficiency and convenience of high-value transactions for all parties.
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