Now, NPCI can revise transaction limits on UPI based on evolving user needs

The Reserve Bank of India (RBI) on Wednesday authorised the National Payments Corporation of India (NPCI) to revise transaction limits on the Unified Payments Interface (UPI), India’s flagship real-time payments platform, in consultation with ecosystem stakeholders and banks.

The RBI said the revision is intended to align transaction limits with evolving user needs. At present, UPI transactions—covering both person-to-person (P2P) and person-to-merchant (P2M) payments—are capped at Rs 1 lakh, except for specific P2M categories, where limits are higher at Rs 2 lakh or Rs 5 lakh depending on the use case.

“To enable the ecosystem to respond efficiently to new use cases, it is proposed that NPCI, in consultation with banks and other stakeholders of the UPI ecosystem, may announce and revise such limits based on evolving user needs,” the RBI said.

It clarified that appropriate safeguards would be implemented to mitigate risks associated with higher limits. Banks would retain the discretion to set internal limits within the cap set by NPCI.

However, the maximum limit for P2P UPI transactions will remain unchanged at Rs 1 lakh, the RBI confirmed.

UPI transactions reached record highs in both value and volume in March 2025, registering Rs 24.77 trillion in value and 19.78 billion in volume. This marked the first time UPI value crossed Rs 24 trillion and monthly transactions exceeded 19 billion since the system became operational in April 2016.

For the financial year 2024–25 (FY25), UPI transactions grew 30 per cent in value to Rs 260.56 trillion, up from Rs 199.96 trillion in FY24. Transaction volume rose 42 per cent to 131.14 billion, compared with 92.48 billion in the previous financial year.