RNS: Aiming to bring convenience and flexibility to online payments, the National Payment Corporation of India (NPCI) has raised the UPI (Unified Payments Interface) payment limit to Rs 5 lakh. This decision, which has received the approval of the Reserve Bank of India (RBI), comes into effect on January 10, heralding a new era in digital transactions.
The enhancement of the UPI payment limit to Rs 5 lakh is expected to have a profound impact, particularly on the medical and education sectors.
It addresses a long-standing demand for an increase in the payment cap and will empower users to conduct UPI transactions of up to Rs 5 lakh in a single day, a substantial rise from the previous limit of Rs 1 lakh.
The revised rule, which has been eagerly awaited, opens up a plethora of possibilities. Individuals can now seamlessly make payments to hospitals during times of illness or settle education-related expenses without any hindrance, given the expanded UPI limit.
The official implementation date for this rule change is January 10, 2024. To ensure a smooth transition, NPCI has issued an advisory to banks and payment service providers, urging them to swiftly implement the heightened UPI payment limit of Rs 5 lakh.
The decision to increase the UPI payment limit aligns with the growing trend of digital payments in India. As a result, users of popular payment platforms such as PhonePe, Google Pay, and Paytm are poised to reap significant benefits from this development. PhonePe, the most widely used payment platform in the country, stands to gain substantially from the expanded UPI limit, followed by Google Pay and Paytm.
This transformative move by NPCI not only responds to the evolving needs of consumers but also paves the way for a more inclusive and efficient digital payment ecosystem in India. With the higher UPI payment limit, individuals and businesses alike can enjoy greater financial flexibility and convenience, ushering in a new era of digital financial transactions in the country.
