If you frequently use UPI (Unified Payments Interface) for payments, there’s exciting news! Starting from September 15, 2024, the transaction limit for UPI payments has been raised to ₹5 lakh per transaction in certain categories.
New UPI Limit Categories:
From September 15, you will be able to transfer up to ₹5 lakh in a single UPI transaction for:
1. Tax Payments – A significant increase for taxpayers.
2. Hospitals and Educational Services – Pay hefty bills with ease.
3. IPO (Initial Public Offerings) and Government Securities (G Sec).
Background:
Previously, the limit was set at ₹1 lakh for UPI transactions in these categories. However, with UPI becoming the preferred payment mode, NPCI (National Payments Corporation of India) has now issued a circular to increase the limit. This new transaction limit is specifically for verified merchants under MCC-9311 (tax payments).
Key Highlights:
- The enhanced limit will allow smoother payments, especially for taxes, hospital bills, educational fees, and investments in IPO and G Sec.
- The earlier limit was raised in two phases, once in Dec 2021 and again in Dec 2023.
- This move was also announced by RBI Governor Shaktikanta Das during the August 8, 2024, monetary policy statement.
Compliance:
Banks, PSPs, and UPI apps have been instructed to ensure that the new limits are enabled for UPI tax payments by September 15, 2024.
This increase in the UPI limit will provide more convenience and flexibility for consumers who need to make large payments across these sectors.