UPI transaction limit increased to ₹5 lakh: Check list of services eligible for new payment limit

As the popularity of Unified Payments Interface (UPI) as a preferred payment grows, the National Payments Corporation of India (NPCI) has enhanced the UPI transaction limit to ₹5 lakh for certain types of payments. The new limit will be effective from Monday, September 16.

In a circular dated August 24, 2024, NPCI said, "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 ₹5 lakh for entities under categories aligned to tax payments," it added.

What types of UPI transactions can be carried out with the increased upper limit of ₹5 lakh per transaction?

The standard UPI transaction limit is ₹1 lakh per transaction. For capital markets, insurance, collections, and foreign remittances, the limit is 2 lakh.

As per the NPCI circular, the ₹5 lakh per transaction limit will be for tax payments, payments to educational institutions, hospitals and investors in Reserve Bank of India (RBI) retail direct schemes and IPOs.

List of services with ₹5 lakh UPI payment limit

• Tax payments
• Hospitals and educational institutions payments
• IPOs and RBI retail direct schemes payment

The merchant must be verified to use the enhanced limit. The NPCI also requires all stakeholders, including banks, UPI apps, and payment service providers (PSPs), to update their applications to adapt to the new transaction limits.