Good news for UPI users!
The National Payments Corporation of India (NPCI) has increased the transaction limit for specific payments, making it much easier to handle large transactions. If you’ve ever struggled with making high-value payments through UPI, this update is for you.
Key Highlights:
- New Transaction Limit: Users can now transfer up to ₹5 lakh per transaction, a significant jump from the previous cap.
- Effective Date: The updated limit is already in effect, starting today.
- What it Covers: The increase applies to payments related to:
- Taxes
- Hospital bills
- Educational fees
- Investments in IPOs
- RBI’s Retail Direct Scheme
Why This Move Matters
Until recently, UPI transactions were capped at ₹1 lakh per day for most users, with some exceptions:
- Capital markets, insurance, and foreign payments had a limit of ₹2 lakh.
Now, with the ₹5 lakh limit, banks, payment providers, and UPI apps will need to update their systems to handle these larger transactions.
The Benefits of the ₹5 Lakh Limit
This move aims to offer more convenience to users who need to make high-value payments. Whether it’s paying hefty hospital bills or investing in the stock market, UPI can now handle it with ease.
Some advantages include:
- No need to split payments for large transactions.
- Faster, more efficient payment processes for businesses and individuals.
- Easier management of big-ticket expenses like education fees or tax payments.
What’s Next for UPI?
With this upgrade, UPI continues to grow as one of the most popular and convenient digital payment methods in India. The focus on user convenience and flexibility is clear, and this bold move further establishes UPI as a key player in India’s financial system.
FAQs
Q1: What is the new UPI transaction limit?
The new UPI transaction limit is ₹5 lakh for specific payments like taxes, hospital bills, and investments.
Q2: When did the ₹5 lakh limit come into effect?
The limit came into effect on Monday, as per NPCI’s circular dated August 24.
Q3: Does this limit apply to all UPI transactions?
No, the ₹5 lakh limit applies to payments related to taxes, educational fees, IPOs, hospital bills, and the RBI’s Retail Direct Scheme.
Q4: What was the previous UPI transaction limit?
The earlier limit was ₹1 lakh per day for most transactions, and ₹2 lakh for capital markets, insurance, and foreign payments.