The National Payments Corporation of India (NPCI) has increased the Unified Payments Interface (UPI) transaction limit to ₹5 lakh for certain types of payments, effective today. This change aims to enhance flexibility for high-value transactions conducted via UPI.
Previously, the standard UPI limit was ₹1 lakh per transaction, with a higher cap of ₹2 lakh for specific categories like capital markets and insurance. Under the new directive, transactions related to tax payments, hospital fees, educational expenses, and investments in IPOs and RBI retail direct schemes can now utilize the increased limit.
As per the NPCI’s August 24 circular, banks and payment service providers must update their systems to reflect the new limit. Merchants handling tax payments are required to be listed as ‘Verified Merchants’ and must enable UPI for transactions up to the new cap.
NPCI’s move comes in response to the growing popularity of UPI in India. The organization has urged all stakeholders to ensure their systems are ready for the enhanced limits. Users are advised to check with their banks and UPI service providers to confirm whether the new limit applies to their transactions.
