The Reserve Bank of India (RBI) today allowed the National Payments Corporation of India (NPCI) to revise transaction limits for person-to-merchant (P2M) payments on the Unified Payments Interface (UPI).
The move aims to accommodate higher-value transactions in select merchant categories.
The announcement was made by the RBI governor Sanjay Malhotra during the first monetary policy review of FY26.
“The other two announcements relate to enabling NPCI to decide, in consultation with the banks and other stakeholders, the transaction limits in UPI for person-to-merchant transactions; and making the Regulatory Sandbox theme-neutral and ‘on-tap’,” the governor said in his statement.
With this change, NPCI will be able to adjust transaction limits for P2M payments, in consultation with banks and other stakeholders. However, person-to-person (P2P) transactions will continue to remain capped at INR 1 lakh.
The move is expected to facilitate higher-value digital payments in sectors like insurance, mutual funds, travel and luxury retail.
Currently, UPI transactions for both P2P and P2M are generally capped at INR 1 lakh, with exceptions for specific merchant categories like education and healthcare, where the limits are higher, ranging from INR 2 Lakh to INR 5 Lakh.
“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 governor added.
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