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At present, the transaction amount for UPI, covering both Person to Person (P2P) and Person to Merchant payments (P2M), is capped at ₹1 lakh except for specific use cases of P2M payments which have higher limits, some at ₹2 lakh and others at ₹5 lakh.
The National Payment Corporation of India (NPCI), in consultation with banks and other stakeholders of the UPI ecosystem, can announce and revise Person to Person (P2P) and Person to Merchant payments (P2M) limits based on evolving user needs, according to the RBI.
At present, the transaction amount for UPI, covering both Person to Person (P2P) and Person to Merchant payments (P2M), is capped at ₹1 lakh except for specific use cases of P2M payments which have higher limits, some at ₹2 lakh and others at ₹5 lakh.
“To enable the ecosystem to respond efficiently to new use cases, it is proposed that NPCI ... may announce and revise such limits based on evolving user needs.
“Appropriate safeguards will be put in place to mitigate risks associated with higher limits. Banks shall continue to have the discretion to decide their own internal limits within the limits announced by NPCI,” RBI Governor Sanjay Malhotra said.
Published on April 9, 2025
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