The National Payments Corporation of India (NPCI) has been notified to comply with the Reserve Bank of India’s (RBI) decision to increase the Unified Payment Interface (UPI) transaction limit to Rs 5 lakh for hospitals and educational services by January 10. This new move will mean that customers will be able to make payments of up to Rs 5 lakh using UPI services for their medical expenses at hospitals or pay their educational fees.
To ensure smooth functioning, the NPCI has directed banks and payment service providers (PSPs) and UPI applications to comply and increase the transaction limit for these specific merchant categories- hospitals and educational institutions. NPCI has stated to clarify that the payment limit extension from Rs 1 lakh to Rs 5 lakh will only apply to ‘verified merchants’.
The National Payments Corporation of India (NPCI) released a circular which stated, “Members (PSPs and banks), UPI apps, merchants and other payment providers are requested to make the requisite changes. Members are requested to ensure its compliance by January 10, 2024.” Merchants are required to enable UPI as a payment mode with the increased limit. Currently, the UPI transaction limit is set to Rs 1 lakh per day by the National Payments Council of India (NPCI).
The Reserve Bank of India (RBI) announced these changes in the recent Monetary Policy Committee (MPC) meeting. Applications like Paytm, Google Pay and PhonePe, as well as other similar services provided by the banks, have been advised to comply.
Meanwhile, more and more users are opting for UPI-based transactions. Such is its popularity now that in 2023, it crossed the Rs 100 billion mark. A total of 118 billion transactions took place throughout the year. NPCI shared data that there is an increase of 60 per cent in comparison to 74 billion transactions recorded in 2022. In 2023, the total value of UPI transactions was recorded to be Rs 182 lakh crore, while in the year 2022, it was recorded to be Rs 126 lakh crore.
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