The Reserve Bank of India (RBI) announced that the transaction limit to Rs 5 lakh for UPI payments to hospitals and educational institutions on December 8, 2023. The National Payment Corporation of India (NPCI) has asked banks, PSPs (Payment Service Provider), and APs to make it available by January 10, 2024.
Major changes in UPI 2023: Increase in transaction limits, UPI Lite X, NPS contributions, other big changes made
According to an NPCI circular dated December 19, 2023 “With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories, as per the RBI Statement on Developmental and Regulatory Policies, dated 81h December 2023. In view of the above, the per transaction value limit in UPI has now been enhanced to 5 lakhs for merchants under categories aligned to hospitals and educational services. This enhanced limit shall only be applicable to ‘Verified Merchants’. Members are requested to ensure compliance with the same by 10th January 2024.”
To enable this enhancement:
1. Banks, PSPs, and API apps must make sure that the per transaction limit has been increased for the merchant categories listed above.
2. Acquiring organisations are responsible for making ensuring that, following appropriate due diligence, merchants are added to the Verified Merchant list.
3. In order to get the higher limit for these categories, merchants must guarantee that UPI is available as a payment option.
UPI limit other transactions
With a few exceptions, such as capital markets (AMC, broking, mutual funds, etc.), collections (credit card payments, loan repayments, EMI), insurance, etc., where the transaction limit is Rs. 2 lakh, the standard UPI transaction limit is restricted at Rs. 1 lakh.
UPI limit stock market
The RBI authorised the UPI single-block and multiple-debit feature, with an implementation date of January 1, 2024. Additional participants, like as stockbrokers like Zerodha, banks serving customers like Axis Bank and Yes Bank, and UPI-enabled applications like PhonePe and Paytm, are now undergoing certification and will shortly take part in a beta launch.
What is UPI?
Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS (Immediate Payment Service) infrastructure and allows you to instantly transfer money between any two parties’ bank accounts.
Different channels for transferring funds using UPI
The different channels for transferring funds using UPI are:
a.Send/Collect through Virtual ID
b.Account Number + IFSC
c.Aadhaar Number
What is the limit of fund transfer using UPI?
According to the NPCI FAQs on UPI, “For normal UPI the transaction limit is up to Rs 1 Lakh per transaction. For few specific categories of transaction in UPI like Capital Markets, Collections, Insurance, Foreign Inward Remittances the transaction limit is up to 2 lakh and for Initial Public Offering and Retail Direct Scheme the limit is up to Rs 5 lakh per transaction.”
According to information released by the National Payments Corporation of India (NPCI), the Unified Payments Interface (UPI) has surpassed the 100 billion dollar threshold. In 2023, UPI handled 117.6 billion transactions in total. According to statistics, last year’s UPI rails handled a little over Rs 182 lakh crore in total value over the payments infrastructure.
