UPI Payments: The National Payments Corporation of India (NPCI) has made a major change about UPI payments. NPCI has increased the daily transaction limit to ₹ 10 lakh for Person-to-CRINT (P2M) payments via UPI. This change has come into effect from September 15, aimed at making large payments easier and safe in major areas. However, the daily limit of Person-to-Person (P2P) payment will remain at ₹ 1 lakh.
Which areas increased limit?
The move will benefit those areas where till now customers had to resort to traditional methods such as banks or cash for large transactions. The limit of insurance and capital market payments has been increased from ₹ 2 lakh to ₹ 5 lakh, while the daily limit will be ₹ 10 lakh. The transaction limit on the Government e-Marketplace (GEM) portal has also been increased from ₹ 1 lakh to ₹ 5 lakh. For travel related payments, the limit of per transaction will increase from ₹ 1 lakh to ₹ 5 lakh and daily limit will be ₹ 10 lakh.
Along with this, a limit of ₹ 5 lakh per transaction has been fixed for credit card bill payment and ₹ 6 lakh daily. For the purchase of jewelry, this limit has been increased from ₹ 1 lakh to ₹ 2 lakh per transaction and daily ₹ 6 lakh.
Why are these steps taken and what will be the benefits?
Fintech experts have welcomed this change, believing that it is a time taken. According to Akash Sinha, CEO of Cashfree Payments, this step will help businesses that handle large payments. This will facilitate customers to complete transactions at once instead of paying several times.
Akshay Mehrotra, co-founder of the digitization platform Fibe, said that this change will bring convenience and flexibility to the customers. He said that it makes UPI a versatile tool, which will further strengthen India’s digital economy. To reduce the risks of fraud with increased range, NPCI has also applied safety measures such as multi-factor authentication and verification process for high-value payments.