Now payment up to 5 lakhs is easy on UPI, NPCI has increased the limit, know in which categories you will get the benefit..

If you also make big payments through UPI, then this news is useful for you. National Payments Corporation of India (NPCI) has increased the limit of UPI payments in many categories. Now you will be able to transact up to Rs 5 lakh at a time. This change will come into effect from September 15, and all banks and payment apps will have to follow it.

In which categories has the limit been increased?

Earlier, only up to Rs 2 lakh could be paid in categories like capital market, insurance, and travel. But now the limit in these categories has been increased to Rs 5 lakh. Not only this, in these sectors, you will be able to make a total payment of up to Rs 10 lakh in 24 hours.

Impact on credit cards and collections

The limit for credit card bill payment has also increased. Here, up to Rs 5 lakh can be paid in one transaction, while the total limit for the whole day has been fixed at Rs 6 lakh. Similarly, in the collection category, a total payment of up to Rs 10 lakh can be made in a day.

Jewellery and digital account opening
The limit for one transaction for buying jewellery has been fixed at Rs 2 lakh, and the limit for the whole day is Rs 6 lakh. At the same time, a payment of up to Rs 5 lakh can be made for digital account opening. But if this is the initial funding for account opening, then the limit will be only Rs 2 lakh.

FX retail and business payments
For FX retail use cases, i.e., services like currency exchange or foreign remittance, now a payment of up to Rs 5 lakh can be made. The limit for business and merchant payments has also been fixed at Rs 5 lakh.

Which users will get the benefit?
NPCI has clarified that this increased limit is only for verified merchant accounts. The limit of Rs 1 lakh per day will remain applicable on common user-to-user (P2P) transactions as before. Banks and payment apps can also keep different limits according to their internal policies, but they will not exceed the new limit set by NPCI.

Why did NPCI take this decision?

UPI has now become the most popular payment mode in the country. A large number of people want to make digital payments in high-value categories like insurance premiums, capital market investments and travel. Keeping these needs in mind, NPCI has increased the limit.

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