SIGN UP FOR POSTSCARD'S MORNING NEWSLETTER

The best stories of the day, in your inbox

UPI Transaction Limit Increase: New Limits Effective from September 16

upi

The National Payments Corporation of India (NPCI) has announced a significant change in the Unified Payments Interface (UPI) transaction limits, effective from September 16, 2024. This move aims to streamline high-value transactions and enhance the digital payment ecosystem in India.

New Transaction Limits of UPI

Starting tomorrow, the UPI transaction limit for tax payments will be increased to ₹5 lakh per transaction, from ₹1 lakh. This change is expected to simplify the tax payment process and encourage more taxpayers to use UPI for larger transactions.

In addition to tax payments, the new limit will also apply to other high-value transactions, including:

  • Hospital Payments: Patients can now use UPI to pay hospital bills up to ₹5 lakh per transaction.
  • Educational Institutions: Users can pay fees for educational institutions using UPI, with the new limit of ₹5 lakh.
  • Initial Public Offerings (IPOs): Investors can use UPI for IPO applications up to ₹5 lakh.
  • RBI Retail Direct Scheme: Transactions under this scheme will also benefit from the increased limit.

Eligibility and Compliance

The increased limit is applicable only to specific transaction categories. Users need to check with their respective banks and UPI apps to ensure compatibility with the new limits. Banks, payment service providers, and UPI apps need to update their systems to accommodate this change.

Impact on Digital Payments

This decision aligns with RBI monetary policy statement from August 8, 2024, which emphasized the need for higher transaction limits. By raising the transaction limit, NPCI aims to make large transactions more convenient and secure, further promoting the adoption of digital payments across various sectors.

Rahul Jain, CFO of NTT DATA Payment Services India, commented, “The increase in the UPI transaction limit to ₹5 lakh for tax payments is a significant move, propelling India towards a digitally inclusive economy”1.

As the new transaction limits come into effect, users can verify their bank and UPI app settings to ensure seamless transactions. This change marks a pivotal step in India’s journey towards a robust digital payment infrastructure, making high-value transactions more accessible and efficient for all.

In a landmark event, Prime Minister Narendra Modi inaugurated Mumbai’s

In a bold and optimistic declaration, Sam Altman, CEO of

In a tragic incident that has shocked the Shakarpur community,

In a shocking incident, authorities have arrested a 30-year-old man

In a significant move, the Maharashtra government has approved the

In a dramatic turn of events, Akshay Shinde, the primary

In a shocking and gruesome discovery, the dismembered body of

Anura Kumara Dissanayake, leader of the Marxist-leaning National People’s Power

In an exciting announcement at the RGG Summit 2024, SEGA

In a significant milestone for the economy of India, experts

In a significant move to expand its footprint in the

In a fiery address, Andhra Pradesh Deputy Chief Minister Pawan

In 2023, the Karnataka Milk Federation (KMF) made headlines when

In a shocking incident that has sparked outrage, an army

The controversy surrounding the sacred Tirupati laddoos has taken a

A mysterious virus is spreading across the United States, causing

In a significant policy shift, the Canada government announced new

In a shocking revelation, a recent lab report has confirmed

In a significant diplomatic move, India has formally notified Pakistan,

In a landmark decision, the Union Cabinet has approved the

In a concerning development, a 38-year-old man from Malappuram, Kerala,

Triumph Motorcycles has launched its new Speed T4 in India

In a significant political development, the government has appointed Atishi

In a thrilling finale to the 2024 Asian Champions Trophy,

In a significant move to boost startup ecosystem, the Centre

Get daily updates in your inbox. Subscribe to our newsletter.