UPI Transaction Limit Raises To Rs 5 Lakh Per Transaction
NPCI increases UPI limits for tax payments, hospital fees, education, IPOs, and RBI Schemes
The National Payments Corporation of India (NPCI) has increased the limit for Unified Payments Interface (UPI) transactions to Rs 5 lakh for certain types of payments. This change, effective from 16 September.
This update follows NPCI’s August 24, 2024, circular, which cited the growing preference for UPI and the need to support higher-value transactions in specific categories.
Under the new update, UPI will now accommodate transactions up to Rs 5 lakh for tax payments. This enhanced limit will also apply to payments for hospitals, educational institutions, initial public offerings (IPOs), and RBI retail direct schemes. Merchants must be verified to use this increased limit.
Currently the general transaction limit on UPI stands at Rs 1 lakh, while categories related to capital markets, insurance, collections, and foreign inward remittances have a limit of Rs 2 lakh per day.
While the new limit comes into effect on 16 September, users are advised to check with their banks and UPI apps, as individual banks may have their own transaction limits. For example, Allahabad Bank currently caps UPI transactions at Rs 25,000, while HDFC Bank and ICICI Bank allow up to Rs 1 lakh for peer-to-peer transfers.
NPCI has instructed all banks and payment service providers to comply with the new limits by 15 September 2024. This move aims to simplify tax payments and further promote the use of UPI for larger financial transactions in the country.
