UPI Transaction Limit Increased To ₹ 5 Lakh For These Payments effective Sep 16 2024

[arunkd386]

Yes.. definitely uniformity will be better

Shouldn’t there be a uniformity.
If RBI has setup a limit then everyone should be following it. Weird to see an inconsistency here.

 

[arunkd386]

Each bank can set its own UPI transaction limits based on its risk management policies, infrastructure, and customer base.

 

[arunkd386]

Some banks might set lower limits to mitigate potential fraud risks or technical issues.

 

[Aniket]

Each bank can set its own UPI transaction limits based on its risk management policies, infrastructure, and customer base.

Joke 🤣, better to provide this limit set-up facility to customer and to enable and disable UPI.

Let customer decide how much he wants to transact. By default they can their set limit (say, 25k or 50 or any other amount) as per their analysis and policies.

 

[arunkd386]

Joke 🤣, better to provide this limit set-up facility to customer and to enable and disable UPI.

Let customer decide how much he wants to transact. By default they can their set limit (say, 25k or 50 or any other amount) as per their analysis and policies.

Everyone likes freedom to choose.

 

[hender]

For Stock Market, trading account - it also got increased to 5 lakh from 2 lakh in a single shot !

If so, that would be beneficial, especially on extreme volatile/downfall days.

​

They are slowly including more payment types in the enhanced limit category items..


UPI Transaction Limit Increased To ₹ 5 Lakh For These Payments. The updated limit will apply to transactions related to

1)Tax payments,
2)Payments to hospitals and educational institutions;
3) Investments in IPOs and RBI retail direct schemes.

UPI Transaction Limit Increased To Rs 5 Lakh For These Payments

The National Payments Corporation of India (NPCI) has increased the limit for Unified Payments Interface (UPI) transactions to Rs 5 lakh for certain types of payments.

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The National Payments Corporation of India (NPCI) has increased the limit for Unified Payments Interface (UPI) transactions to ₹ 5 lakh for certain types of payments. This change, effective from September 16, is set to bring greater flexibility and convenience to users who make high-value transactions through UPI.

The standard UPI transaction limit has been ₹ 1 lakh per transaction, with a slightly higher limit of ₹ 2 lakh for specific categories such as capital markets, collections, insurance and foreign inward remittances. The new measure, as outlined in an NPCI circular dated August 24, will see this limit increase to ₹ 5 lakh for transactions related to tax payments, payments to hospitals and educational institutions and investments in IPOs and RBI retail direct schemes.

According to the NPCI circular, "to enable this enhancement" the following conditions must be met:

Banks, payment service providers (PSPs) and UPI apps must update the per-transaction limit for categories of verified merchants as specified in the annexure.

Acquiring entities are required to ensure that merchants classified under 'MCC-9311' are exclusively handling tax payments. They must add these entities to the 'Verified Merchant' list only after thorough due diligence.

Merchants must enable UPI as a payment option for transactions up to the new limit specifically for tax payments.

The NPCI's decision to increase the UPI transaction limit stems from the growing popularity of the payment method in India. "With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories," the NPCI stated in its circular.

The organisation has urged all stakeholders in the payments ecosystem, including banks, payment service providers and UPI apps to ensure their systems are updated to accommodate the new transaction limits.

Post a comment This enhancement is expected to streamline high-value transactions and provide more options for users engaging in substantial financial activities. To ensure smooth transactions under the new limit, users are advised to verify with their banks and UPI service providers whether the increased limit applies to their specific transactions.

 

[sudhaacademy]

The UPI transaction limit has been increased to ₹5 lakh for select payments starting September 16, 2024. This change aims to enhance the convenience of high-value transactions. The new limit will apply to certain use cases like real estate, insurance, and other high-value services. The move is expected to promote digital payments and improve transaction efficiency across sectors.