The Reserve Bank of India (RBI) has granted the National Payments Corporation of India (NPCI) the power to raise the transaction limits for Person-to-Merchant (P2M) and Merchant-to-Merchant (M2M) UPI transactions. The existing limit of ₹1 lakh can now be increased to ₹2 lakh or ₹5 lakh, benefiting businesses by allowing larger transactions without restrictions. This change is particularly advantageous for online businesses, jewelers, and electronics retailers.
However, there will be no change to the current ₹1 lakh limit for Person-to-Person (P2P) transactions. This move is expected to accelerate digital payments in India, promoting transparency and strengthening the payment system. Banks will need to focus on securing transactions to prevent fraud, while NPCI will manage the new transaction limits based on market needs.
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