Mumbai — Good news for digital payment users in India! The Unified Payments Interface (UPI) is set to enable higher-value transactions with increased daily limits for several key categories. Starting September 15, users will be able to make larger payments for things like insurance premiums, travel bookings, and credit card bills, making big transactions more seamless than ever.
The National Payments Corporation of India (NPCI), which governs UPI, has released a comprehensive chart outlining the new limits, which apply to payments made to verified merchants. The move is aimed at expanding UPI’s utility beyond small, day-to-day transactions and solidifying its role as a key player in India’s financial ecosystem.
Here’s a Breakdown of the New Rules:
- ₹10 Lakh Daily Limit: The daily cumulative transaction limit has been hiked to ₹10 lakh for a number of high-value categories. This includes:
- Insurance Premiums: Making it easier to pay for policies in a single go.
- Capital Market Payments: This includes investments, such as those made through broking houses, mutual funds, and asset management companies.
- Government e-Marketplace (GeM) and Tax Payments: Streamlining transactions with government agencies.
- Travel Bookings: Allowing for the purchase of flights, hotels, and travel packages without splitting payments.
- Collections: Facilitating larger B2B or loan-related transactions.
- ₹6 Lakh Daily Limit: For other important categories, the daily limit has been increased to ₹6 lakh. This applies to:
- Credit Card Payments: Providing a more convenient way to pay off bills.
- Jewelry Purchases: Enabling high-value retail transactions.
- Digital Account Opening: The new limits also extend to digital banking. The per-transaction and daily limit for opening a digital account for a term deposit is ₹5 lakh, while the initial funding for a new digital account has a limit of ₹2 lakh.
It is important to note that the standard person-to-person (P2P) transaction limit remains at ₹1 lakh per day. These enhanced limits are specifically for person-to-merchant (P2M) transactions with verified merchants. The changes will be implemented across all UPI apps, banks, and payment service providers by September 15.
Recent UPI System Updates
This latest change builds on a series of recent updates to the UPI system. Earlier this year, the NPCI introduced new guidelines to improve efficiency and security. These changes included:
- Non-Peak Hours for Auto-Payments: To reduce the load on the UPI system, autopayments are now mandated to be deducted during non-peak hours (before 10 am, between 1-5 pm, and after 9:30 pm).
- Balance Enquiry Limits: Users can now check their remaining balance a maximum of 50 times a day, to limit unnecessary queries.
- Enhanced Fraud Prevention: To protect users from fraud, the recipient’s name is now displayed to the sender before every transaction, ensuring greater transparency.
With these new, higher limits, UPI is poised to become the go-to platform for a wider range of financial transactions, from everyday purchases to significant investments and payments, further cementing India’s shift toward a digital-first economy.