UPI Payment Limit Hiked To Rs 5 Lakh For These Transactions Starting Today
UPI Payment Limit: All banks and payment service providers have been instructed by NPCI to comply with this new limit by September 15, 2024
UPI Payment Limit: Taxpayers in India will be able to pay up to Rs 5 lakh per transaction through the Unified Payments Interface (UPI) from today (September 16), following a new directive from the National Payments Corporation of India (NPCI). This marks a significant increase from the previous limit of Rs 1 lakh and comes in response to the growing use of UPI for high-value transactions.
The NPCI issued a circular on August 24, 2024, announcing the change. The circular noted that UPI has emerged as a preferred payment method, particularly for categories like tax payments, hospitals, educational institutions, Initial Public Offerings (IPOs), and RBI retail direct schemes. The increase aims to make it easier for users to make higher-value payments.
Here Are The Key Changes:
Transaction Limit Increase: The maximum limit for UPI-based tax payments has been raised to Rs 5 lakh per transaction.
Expanded Scope: The higher limit will also apply to payments to hospitals, educational institutions, IPOs, and certain other government schemes.
Merchant Verification: To take advantage of the new limit, the merchant must be verified.
Implementation Date: The new limit will be effective from September 16, 2024. However, users should check with their respective banks and UPI apps to confirm if they support this increased limit, as individual banks may have varying transaction caps.
For example, Allahabad Bank currently limits UPI transactions to Rs 25,000, while HDFC Bank and ICICI Bank allow up to Rs 1 lakh for peer-to-peer payments.
All banks and payment service providers have been instructed by NPCI to comply with this new limit by September 15, 2024.
Shaktikanta Das, Governor of the Reserve Bank of India, praised the initiative, saying, "The increase in the UPI transaction limit for tax payments will ease the process of payments for consumers. This initiative aligns with our goal of promoting digital payments across various sectors."
This change is part of NPCI’s broader effort to improve the convenience and efficiency of digital payments across India.
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