The Reserve Bank of India (RBI) took a major step towards making the transaction limit more flexible, keeping in mind the ever-increasing use of the Integrated Payment Interface (UPI) and empowered the National Payment Corporation of India (NPCI) to change the limit of transactions through UPI.
RBI Governor Sanjay Malhotra on Wednesday informed about the decision of the first bilateral monetary policy review meeting of the current financial year, saying that NPCI has been empowered to amend the UPI transactions limits as per new circumstances in consultation with banks and other stakeholders.
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He informed that at present, the maximum limit of person (P2P) from a person (P2P) and a businessman (P2M) transaction on UPI is Rs 1 lakh. However, in some special P2M cases, this limit goes up to Rs 2 lakh and Rs 5 lakh.
Malhotra said that under the new system, NPCI will be able to decide new boundaries of UPI transactions as per the needs. Banks will be free to set their internal limits according to their risk assessment within these declared limitations. Necessary safety measures will be applied to reduce the risks coming along the high transaction limit.
The RBI has also clarified that the current limit of one lakh rupees will remain further on P2P transactions through UPI and NPCI will be instructed in this regard. Input agencies edited by: Sudhir Sharma
