UPI Transaction Limit Doubled For High Value Payments

The National Payments Corporation of India (NPCI) has now doubled the per transaction limit for high ticket payments made through the Unified Payments Interface (UPI) to 'verified merchants' to Rs 2 lakh for the upcoming financial year 2020-21.

The update is expected to help digital payments businesses like Paytm, Google Pay, and PhonePe and retail stores across the country.

In a circular issued on 3 March to all members banks on the UPI network, the NPCI notified that the increased transaction limit would be applicable for other high-ticket transactions like investments in capital markets, bill collections, insurance premium payouts and for pre-approved disbursements.

However, the higher limit will not apply for peer-to-peer transfers.

The change will be effective from 1 April. Payment service firms and banks are requested to make the required changes to their application systems and mobile apps to accommodate the same.

NPCI said that with UPI emerging as the preferred mode of payment, there was an increase in demand to extend the per transaction limit in UPI from Rs 1 lakh to Rs 2 lakh for specific use cases.

It will likely help in transfers towards mutual funds, insurance, trading accounts, etc.

In February, the highest ever transactions on UPI was recorded at 1.32 billion wherein Rs 2,21,995 crore was transacted.