UPI users can now send Rs 5 lakh for some transactions: Check details

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The National Payments Corporation of India (NPCI) has increased transaction limits for tax payments using Unified Payments Interface (UPI), allowing people to transfer Rs 5 lakh in a single transaction starting Sunday.

“Acquiring entities must ensure that the classification of their merchants within MCC-9311 strictly adheres to the tax payments only….Merchants shall ensure UPI as a payment mode is enabled for the increased limit for the tax payments category,” said NPCI in a circular.

While announcing its monetary policy statement on August 8, 2024, RBI had announced the enhancement of the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction.

Consumers can now make UPI payments of up to Rs 5 lakh per transaction for the following categories: a) tax payments, b) hospital and educational services, and c) IPOs and government securities.

Two additional enhancements were previously introduced through circulars issued in December 2021 and December 2023.

NPCI has also introduced a new feature called ‘UPI Circle’ on its Unified Payments Interface (UPI) platform. This feature allows primary UPI account holders to securely delegate payment responsibilities to trusted secondary users.

Rate cuts and higher discretionary spending likely to boost tech funds

For instance, parents can provide their children with limited access to their accounts for managing daily expenses. The RBI anticipates that this will greatly improve the convenience and inclusivity of digital payments across India.

The RBI’s ongoing efforts to improve the UPI framework also include measures to enhance security. For example, a proposed four-hour window for users initiating payments over Rs 2,000 to new recipients will allow for transaction modifications or reversals, adding an additional layer of control for users

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We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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UPI users can now send Rs 5 lakh for some transactions: Check details

The National Payments Corporation of India (NPCI) has increased transaction limits for tax payments using Unified Payments Interface (UPI), allowing people to transfer Rs 5 lakh in a single transaction starting Sunday.

“Acquiring entities must ensure that the classification of their merchants within MCC-9311 strictly adheres to the tax payments only….Merchants shall ensure UPI as a payment mode is enabled for the increased limit for the tax payments category,” said NPCI in a circular.

While announcing its monetary policy statement on August 8, 2024, RBI had announced the enhancement of the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction.

Consumers can now make UPI payments of up to Rs 5 lakh per transaction for the following categories: a) tax payments, b) hospital and educational services, and c) IPOs and government securities.

Two additional enhancements were previously introduced through circulars issued in December 2021 and December 2023.

NPCI has also introduced a new feature called ‘UPI Circle’ on its Unified Payments Interface (UPI) platform. This feature allows primary UPI account holders to securely delegate payment responsibilities to trusted secondary users.

Rate cuts and higher discretionary spending likely to boost tech funds

For instance, parents can provide their children with limited access to their accounts for managing daily expenses. The RBI anticipates that this will greatly improve the convenience and inclusivity of digital payments across India.

The RBI’s ongoing efforts to improve the UPI framework also include measures to enhance security. For example, a proposed four-hour window for users initiating payments over Rs 2,000 to new recipients will allow for transaction modifications or reversals, adding an additional layer of control for users

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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