The National Payments Corporation of India (NPCI) has made a big change to its Unified Payments Interface (UPI) architecture. For some important sectors, the restriction on how much money may be sent in a single transaction has been raised to ₹5 lakh. This change is a direct response to the increased demand for digital payments with bigger values. It will go into effect on September 15.
An NPCI circular from August 28 made the decision official. It said that the industry needed higher transaction limits because UPI is becoming the most popular way to pay online in India. This shift is likely to have a big effect on businesses that deal with significant transactions, especially in areas like capital markets, insurance, and travel. A lower transaction limit used to make it hard for big payments to happen, but this higher ceiling will make things easier for these industries.
It’s vital to remember that only confirmed merchants who follow NPCI’s tight rules can use the new, higher limitations. The circular says that member banks, which are in charge of signing up these merchants, must make sure that the increased limits are only given to enterprises that follow all the rules.
The NPCI has set this new maximum, but it has also given its member banks some freedom. Banks can still set their own limitations on how much money they can move around inside their own systems, as long as these limits don’t go beyond the new cap of ₹5 lakh.