UPI rule changes: If you also use Unified Payment Interface (UPI), then there is good news for you. The National Payments Corporation of India (NPCI) has increased the UPI transaction limit for some categories from September 15. Now in some payments, you will be able to send more money at once than before.
Which category has the limit increased?
- Capital markets, insurance, government e-marketplace, travel, credit card bill payments, business/merchant payments, collections – the limit for all of these has been increased to Rs 5 lakh.
- Purchase of jewellery and opening of digital account (initial funding) – The limit for these will be Rs 2 lakh.
- Term Deposit Digital Account Opening and FX Retail (BBPS Platform) – The limit in these categories will also be Rs 5 lakh.
Who will benefit?
Now if you want to pay a large credit card bill through UPI, pay insurance premium or make a purchase from a government e-marketplace, you will not need to make repeated payments. Up to Rs 5 lakh can be transferred at a time. Customers buying jewellery and opening digital accounts will also get the facility to transfer large amounts at a time.
Guidelines for banks
NPCI has clarified that the benefit of limit increase will be available only to certified merchants. Banks will have to ensure that this new limit is available only to those who comply with NPCI norms. However, if banks wish, they can also have a separate internal limit as per their policy.
Effective from September 15
, all payment apps and service providers will have to implement this change by September 15, 2025. After this, large amounts can be easily sent through UPI.
What is UPI
UPI is a real-time payment system, with the help of which you can send money to anyone directly from your bank account or request money from them, that too 24×7 and instantly. In this system, each user has a UPI ID (like abc@upi), just like an email address. You can send money by just scanning the mobile number or UPI ID or QR code. In this system, there is no need to remember the IFSC code or account number. You only have to enter a PIN (UPI PIN) for the transaction.
