UPI Users Can Now Send Rs 5 Lakh for Some Transactions: Check Details
Majority of UPI Users Oppose Transaction Fees, Survey Reveals
The National Payments Corporation of India (NPCI) has increased transaction limits for tax payments and other services via UPI, providing enhanced convenience and security features.
The National Payments Corporation of India (NPCI) has announced a significant increase in the Unified Payments Interface (UPI) transaction limits, allowing users to send up to Rs 5 lakh in a single transaction for specific categories. This enhancement applies to tax payments, hospital and educational services, as well as IPOs and government securities.
The new limit, effective following an announcement during the Reserve Bank of India’s (RBI) monetary policy statement on August 8, 2024, raises the previous cap from Rs 1 lakh to Rs 5 lakh. To ensure compliance, acquiring entities must categorize their merchants correctly under MCC-9311 for tax payments only and enable UPI for transactions at the new limit.
In addition to this increase, NPCI has introduced a feature called ‘UPI Circle,’ which allows primary UPI account holders to delegate payment responsibilities securely to trusted secondary users. This feature aims to enhance user convenience while maintaining robust security protocols.
Further improvements in the UPI framework include a proposed four-hour window for modifying or reversing payments exceeding Rs 2,000 to new recipients, adding an extra layer of control and security for users. These changes reflect ongoing efforts by RBI and NPCI to advance UPI’s functionality and safeguard user transactions.
