RBI permits NPCI to enhance transaction limits in UPI for P2M payments

RBI allows NPCI to revise UPI transaction limits, proposes new regulations for gold loans and regulatory sandbox framework.

The Reserve Bank on Wednesday (April 9, 2025) permitted NPCI to upwardly revise transaction limits in UPI for person-to-merchant payments (P2M) based on evolving user needs.

National Payments Corporation of India (NPCI) is an umbrella organisation for operating retail payments and settlement systems in India.

UPI or Unified Payments Interface is a real-time payment system used for sending and receiving money between bank accounts using a mobile app.

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, in consultation with banks and other stakeholders of the UPI ecosystem, may announce and revise such limits based on evolving user needs," RBI Governor Sanjay Malhotra said.

Appropriate safeguards will be put in place to mitigate risks associated with higher limits, he added.

Banks shall continue to have the discretion to decide their own internal limits within the limits announced by NPCI, the governor added.