RBI allows NPCI to revise UPI limits for merchant payments

UPI

The Reserve Bank of India (RBI) has allowed the National Payments Corporation of India (NPCI) to revise transaction limits for person-to-merchant (P2M) payments on the Unified Payments Interface (UPI), paving the way for select higher-value transactions.

The decision to raise the limits was announced by RBI governor Sanjay Malhotra on April 9 while sharing the outcome of the first policy review of FY26.

"Appropriate safeguards will be put in place to mitigate risks associated with higher limits. Banks
shall continue to have the discretion to decide their own internal limits within the limits
announced by NPCI," the RBI said.

At present, UPI transactions — both person-to-person (P2P) and P2M — are largely capped at Rs 1 lakh. In some merchant categories such as education and healthcare, the cap is at Rs 5 lakh. With this latest move, NPCI, which operates the instant payment system, can now revise such these limits in consultation with banks and stakeholders.

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The RBI clarified P2P limit will continue to be capped at Rs 1 lakh.

The revision in limits move is expected to support the growing demand for high-value digital transactions in sectors such as insurance, mutual funds, travel, and high-end retail, further strengthening UPI’s role as a dominant payment mode in India.