Mumbai: Reserve Bank of India Governor Sanjay Malhotra announced that the National Payment Corporation of India (NPCI) will have the flexibility to modify transaction restrictions on UPI’s internal merchant transactions.
“NPCI may modify these restrictions in accordance with evolving user needs when consulting with banks and other stakeholders in the UPI ecosystem,” Malhotra said.
“Appropriate safeguards will be implemented to address any risks associated with higher limits.” He further clarified that the bank will reserve its discretion to set its own internal limits within the framework established by the NPCI.
Currently, UPI’s transaction limit covers individual-person (P2P) and person-person-contract (P2M) payments at Rs 10,000. However, some P2M payments have higher limits, ranging from Rs 20 lakh to Rs 5 lakh. P2P transactions on UPI will continue to be capped at Rs 1 lakh.
