The popularity of UPI payments is increasing across the country with more people joining the system every day. Whether it’s purchasing everyday items or sending money to someone, UPI has emerged as a convenient and go-to payment option for all of us. The interface allows easy money transfers without much hassle. However, earlier there was a limit to a single transaction which has now been raised by the authorities.
The National Payments Corporation of India (NPCI) said in one of its circulars that they have decided to raise the transaction limit for UPI payments to Rs 5 lakh. However, this feature will reportedly be available only for specific payments. Earlier, the limit for a single transaction was Rs 1 lakh while for transactions related to capital markets, collections, insurance and foreign inward remittances, the daily limit was Rs 2 lakh.
The three types of transactions in which you can pay any amount up to Rs 5 lakh are:
Tax Payment
Payments to hospitals and educational institutions
Payments for investment in IPOs and other RBI’s Retail Direct Scheme
The circular issued by NPCI on August 24, 2024, reads, “With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories. In view of the above, the per transaction value limit in UPI has now been enhanced to Rs 5 lakh for entities under categories aligned to tax payments.”
While talking about this, Shaktikanta Das, Governor of the Reserve Bank of India mentioned that this initiative will ease the process of payments. He said, “Presently, the transaction limit for UPI is Rs 1 lakh except for certain categories of payments which have higher transaction limits. It has now been decided to increase the limit for tax payments and some other categories through UPI from Rs lakh to Rs 5 lakh per transaction. It will further ease payments for consumers through UPI.”
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