The National Payments Corporation of India (NPCI) has directed members to comply with the Reserve Bank of India’s (RBI’s) decision to increase the Unified Payment Interface (UPI) transaction limit to ₹5 lakh for hospitals and educational services by January 10.
This means customers will be able to make payments up to ₹5 lakh via UPI for expenses such as medical bills in hospitals or fees for educational services soon.
To ensure compliance, the NPCI has instructed banks, payment service providers (PSPs), and UPI applications to increase transaction limits for the specified merchant categories.
“Members (PSPs & Banks), UPI apps, merchants, and other payment providers are requested to take note of the enhancement and undertake requisite changes. Members are requested to ensure compliance with the same by January 10, 2024,” it said in a circular.
Merchants are required to enable UPI as a payment mode with the increased limits.
Acquiring entities will be responsible for adding merchants to the verified list after conducting due diligence, NPCI said.
Right now, the UPI transaction limit set by the National Payments Council of India (NPCI) is ₹1 lakh per day.
The total value of UPI transactions in 2023 stood at approximately ₹182 lakh crore, a 44% increase compared to ₹126 lakh crore in 2022.
If we look at the monthly transaction amount, the same touched ₹18.23 lakh crore in December.
(Edited by : Amrita)
First Published: Jan 4, 2024 12:00 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
