UPI transaction limit set to change from next week; check limits for different UPI payments
Soon, you can use UPI for tax payments of up to Rs 5 lakh
In a circular dated August 24, 2024, NPCI said, «With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories… In view of the above the per transaction value limit in UPI has now been enhanced to Rs 5 lakh for entities under categories aligned to tax payments.»
NPCI asked banks, payment service providers and UPI apps to ensure that the transaction limit should be increased for the MCC 9311 category of verified merchants. «Acquiring entities must ensure that the classification of their merchants within MCC 9311 strictly adheres to the tax payments only. They shall ensure that entities added to the 'verified merchant' list after proper due diligence,» NPCI stated. The merchants shall also ensure that UPI as a payment mode is enabled for the increased limit for the tax payments category, NPCI mentioned.
NPCI has asked all the members — banks, payment service providers and UPI apps to ensure compliance with the increase in tax payment transaction limit by September 15, 2024.
Commenting on the latest development, Rahul Jain – CFO, of NTT DATA Payment Services India says, «NPCI announcement to increase the transaction limit to Rs 5 lakh for tax payments using UPI, from Rs 1 lakh earlier is a significant move, propelling India towards digitally inclusive economy. This initiative will strengthen the tax-collection system, reduce the cost of tax collection, and make tax payments more
