It may now become possible to make a single transaction up to ₹5 lakh using the Unified Payments Interface (UPI) for a few specific purposes, according to an Economic Times report which added that the limit per transaction is ₹1 lakh generally and for ones related to capital markets, collections, insurance, and foreign inward remittances, the limit is ₹2 Lakh per day.
₹5 lakh in a single transaction from Monday, September 16, 2024(Representational Image)” title=”It may become possible to use UPI to pay tax up to ₹5 lakh in a single transaction from Monday, September 16, 2024(Representational Image)” />“With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories,” the National Payments Corporation of India (NPCI) said in a circular dated August 24, 2024. “In view of the above the per transaction value limit in UPI has now been enhanced to ₹5 lakh for entities under categories aligned to tax payments.”
Also Read: Pfizer drug helped cancer patients regain lost weight, study shows
What are the types of UPI transactions that can be done with an increased upper limit of ₹5 lakh per transaction?
The NPCI has increased the transaction limit from ₹1 lakh to ₹5 lakh for the following types of transactions:
a) Tax payments
b) Hospitals and educational institutions
c) For IPOs and RBI retail direct schemes
When will it become possible to make UPI transactions up to ₹5 lakh?
It may become possible to use UPI to make these payments up to ₹5 lakh in a single transaction from Monday, September 16, 2024.
For this, NPCI asked all the members involved in the payments infrastructure including banks, payment service providers and UPI apps to ensure compliance with the increase in tax payment transaction limit by Sunday, September 15, 2024.
However, the merchants must be verified to carry out the transactions and it is best to check with your bank and UPI app to see if it applies for that one specifically or not, since banks can decide individual daily UPI transaction limits.
For example, the Allahabad Bank’s UPI transaction limit is ₹25,000, according to Google Pay UPI issuing bank-wise limits.
HDFC Bank and ICICI Bank on the other hand allow UPI transactions of up to ₹1 lakh for peer-to-peer payments.
Also Read: Free Aadhaar update deadline extended to December 14, check details and steps
