RBI Urges NPCI to Consider Higher UPI Transaction Limits

By  News On Air   Apr 09, 2025

In a move aimed at enhancing digital payment flexibility, the Reserve Bank of India (RBI) has directed the National Payments Corporation of India (NPCI) to explore the possibility of increasing transaction limits for Unified Payments Interface (UPI). This initiative comes as part of RBI’s ongoing efforts to adapt to evolving user needs and growing adoption of digital payments in India.

According to an official statement issued on Tuesday, the central bank has advised NPCI to initiate consultations with banks and other key stakeholders to evaluate a feasible increase in UPI limits. RBI emphasized that any upward revision must be accompanied by appropriate safeguards to manage potential financial risks.

Currently, the maximum limit for UPI person-to-person (P2P) and person-to-merchant (P2M) transactions stands at ₹1 lakh. However, certain specific merchant categories, such as education and healthcare, are allowed transactions up to ₹5 lakh. The RBI has clarified that the existing P2P cap of ₹1 lakh will remain unchanged for now.

The final decision on revised limits, if any, will rest with NPCI in consultation with financial institutions. Banks will also retain the autonomy to set their internal limits within the ceiling defined by NPCI.

As digital payments continue to grow, this development could pave the way for more seamless and higher-value UPI transactions, further promoting a cashless economy.