You Can Now Transfer ₹5 lakh in a Single UPI Transaction Under This Category
NPCI has revised the limit to ₹5 lakh for UPI transactions related to tax payments, hospital and educational services, as well as payments for IPOs and government securities (G-Secs).
UPI Transactions
If you frequently use the Unified Payments Interface (UPI) for transactions, there's some great news for you.
NPCI, which oversees UPI, has increased the transaction limit to ₹5 lakh for specific categories. This enhanced limit applies to tax payments, hospital and educational services, as well as IPO and government securities (G-Secs). The new limit is applicable to 'verified merchants,' allowing you to make tax payments of up to ₹5 lakh in a single UPI transaction. This adjustment aims to accommodate the growing preference for UPI as a payment method.
In its latest circular, NPCI has instructed banks, Payment Service Providers (PSPs), and UPI apps to implement this increased limit for tax payments. It emphasises that merchants classified under MCC-9311 should ensure UPI payments are enabled for this new limit. The circular also requires members to comply with this update by September 15, 2024.
During the RBI policy announcement on August 8, 2024, Reserve Bank of India Governor Shaktikanta Das revealed an increase in the UPI transaction limit for tax payments, raising it from ₹1 lakh to ₹5 lakh per transaction.
Das stated, “We have decided to enhance the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. This change will further facilitate easier payments for consumers using UPI.”
