UPI Transaction Limit Raised To Rs 5 Lakh For Specific Categories; Know Details Here

In an effort to help millions of taxpayers in the country, the National Payments Corporation of India (NPCI) has raised the limit to Rs 5 lakh per transaction for a specific category of transactions.

In a circular dated August 24, 2024, NPCI stated, "As UPI becomes a preferred payment method, there is a need to increase the per-transaction limit for specific categories. Therefore, the per-transaction limit for UPI has been raised to Rs 5 lakh for entities involved in tax payments."

NPCI stated that acquiring entities must ensure that merchants classified under MCC 9311 are exclusively for tax payments and that only properly vetted entities are added to the 'verified merchant' list.

What Is Start Date For Making UPI Transactions Up To Rs 5 Lakh?

NPCI further instructed all members, including banks, payment service providers, and UPI apps, to comply with the new tax payment transaction limit by September 15, 2024.

Which Categories Now Allow UPI Payments Up To Rs 5 Lakh per Transaction?

Consumers can now use UPI to make payments up to Rs 5 lakh per transaction for the following categories: tax payments, hospital and educational services, and IPOs and government securities.

Additionally, two previous enhancements were implemented through circulars issued in December 2021 and December 2023.

NPCI has also launched a new feature called 'UPI Circle' on its Unified Payments Interface (UPI) platform. This feature enables primary UPI account holders to securely assign payment responsibilities to trusted secondary users.