UPI transaction limit increased to ₹5 lakh for three types of payments: Date and details

The National Payments Corporation of India (NPCI) has increased the transaction limit for three types of payments using UPI to ₹5 lakh for convenience

Published on: Sep 15, 2024, 17:01:46 IST

By HT News Desk

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It may now become possible to make a single transaction up to ₹5 lakh using the Unified Payments Interface (UPI) for a few specific purposes, according to an Economic Times report which added that the limit per transaction is ₹1 lakh generally and for ones related to capital markets, collections, insurance, and foreign inward remittances, the limit is ₹2 Lakh per day.

It may become possible to use UPI to pay tax up to ₹5 lakh in a single transaction from Monday, September 16, 2024 (Representational Image)

“With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories,” the National Payments Corporation of India (NPCI) said in a circular dated August 24, 2024. "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."

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What are the types of UPI transactions that can be done with an increased upper limit of ₹5 lakh per transaction?

The NPCI has increased the transaction limit from ₹1 lakh to ₹5 lakh for the following types of transactions:

a) Tax payments

b) Hospitals and educational institutions

c) For IPOs and RBI retail direct schemes

When will it become possible to make UPI transactions up to ₹5 lakh?

It may become possible to use UPI to make these payments up to ₹5 lakh in a single transaction from Monday, September 16, 2024.

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For this, NPCI asked all the members involved in the payments infrastructure including banks, payment service providers and UPI apps to ensure compliance with the increase in tax payment transaction limit by Sunday, September 15, 2024.

However, the merchants must be verified to carry out the transactions and it is best to check with your bank and UPI app to see if it applies for that one specifically or not, since banks can decide individual daily UPI transaction limits.

For example, the Allahabad Bank's UPI transaction limit is ₹25,000, according to Google Pay UPI issuing bank-wise limits.

HDFC Bank and ICICI Bank on the other hand allow UPI transactions of up to ₹1 lakh for peer-to-peer payments.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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