RBI allows flexibility in UPI transaction limits for in-person merchant payments
Agencies
Synopsis
RBI Governor Sanjay Malhotra announced that NPCI will have the flexibility to adjust transaction limits for UPI in-person merchant payments, in consultation with banks and stakeholders. While the current cap for P2P transactions remains ?1 lakh, P2M payments may see limits revised based on user needs, with safeguards in place.
By ET Bureau
Last Updated:
Mumbai: RBI governor Sanjay Malhotra announced that the National Payments Corporation of India (NPCI) will have the flexibility to revise the transaction limits for UPI in-person merchant transactions.
"Appropriate safeguards will be implemented to address any risks associated with higher limits." He further clarified that banks will retain the discretion to set their own internal limits within the framework established by NPCI.
Currently, the transaction limit for UPI, covering both person-to-person (P2P) and person-to-merchant (P2M) payments, is set at ?1 lakh. However, certain P2M payments have higher limits, ranging from ?2 lakh to ?5 lakh. P2P transactions on UPI will continue to be capped at ?1 lakh.
ADVERTISEMENT
"NPCI, in consultation with banks and other stakeholders in UPI ecosystem, may revise these limits based on evolving user needs," Malhotra said. "Appropriate safeguards will be implemented to address any risks associated with higher limits." He further clarified that banks will retain the discretion to set their own internal limits within the framework established by NPCI.
Currently, the transaction limit for UPI, covering both person-to-person (P2P) and person-to-merchant (P2M) payments, is set at ?1 lakh. However, certain P2M payments have higher limits, ranging from ?2 lakh to ?5 lakh. P2P transactions on UPI will continue to be capped at ?1 lakh.
(You can now subscribe to our Economic Times WhatsApp channel)
