Raise UPI transfer limit to ₹5 lakh by Jan 10, NPCI tells members: Report
National Payments Corporation of India (NPCI) has directed members to comply by January 10 with the banking regulator’s decision to raise the UPI transaction limit to ₹5 lakh for hospitals and educational services, reported Business Standard. To ensure compliance, the NPCI has instructed banks, payment service providers (PSPs), and UPI applications to increase transaction limits for the specified merchant categories. “It is a move in the right direction.
The average ticket size has gone up in these sectors. So, it’s a good move to increase the limits," said Vishwas Patel, joint managing director, Infibeam Avenues. He anticipates no significant challenges in implementing these changes by January 10.
PhonePe has also confirmed that it was “on track to roll out the required changes for users as per the prescribed timelines." Also,the NPCI has clarified that the increased limit, from ~1 lakh to ~5 lakh, will only apply to “verified merchants". “Members (PSPs&Banks), UPI apps, merchants, and other payment providers are requested to take note of the enhancement, and undertak requisite changes. Members are requested to ensure compliance with the same by 10th January 2024," it said in a circular.
Merchants are required to enable UPI as a payment mode with the increased limits. Acquiring entities will be responsible for adding merchants to the verified list after conducting due diligence. “Here, the due diligence is to be done by the merchant acquirer and not by PhonePe in its role as a third-party application provider (TPAP).
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