The National Payments Corporation of India (NPCI) has made some very important changes in the rules of UPI transactions. These changes are coming into effect from September 15. These new rules will provide great relief to the common people as well as those merchants who transact with UPI.
Actually, NPCI is increasing the limit of UPI transactions for certain categories like insurance premiums, capital market, credit card bill payment, etc., to ₹ 5 lakh per transaction. In these categories, you will be able to transact up to a maximum of ₹ 10 lakh in a day, i.e., 24 hours.
The limit has increased for these 12 categories
NPCI has informed that this increased limit will apply to 12 different categories. These also include Government e-Marketplace (GeM), travel, and merchant-related transactions, whose limit will now be ₹ 5 lakh. However, there is no change in the daily limit of P2P (person-to-person) transactions. That is, you can transfer a maximum of ₹1 lakh in a day from a normal UPI account as before.
Know what the new limit is in which category
- Capital Market Investment earlier ₹5 lakh now ₹10 lakh
- Insurance earlier ₹5 lakh now ₹10 lakh
- Government e-Market Place (GeM) earlier ₹5 lakh, now ₹10 lakh
- Travel earlier ₹5 lakh now ₹10 lakh
- Credit Card Payment earlier ₹5 lakh now ₹6 lakh
- Jewellery earlier ₹5 lakh now ₹6 lakh
- Business/Merchant Payment earlier ₹5 lakh now —
- Opening a Digital Account earlier ₹5 lakh now ₹5 lakh
Why is this change necessary?
UPI is being used extensively in India today. Initially, UPI was used only for transactions at small shops, but now it is being used for many big payments as well. This move by NPCI shows how much people are adopting UPI, making it a strong means of digital payment. This step will increase the use of UPI even more and make it a reliable option for large financial transactions. Increasing the limit of UPI transactions will benefit the general public as well as the traders.