%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(27).png "RBI has allowed NPCI to increase UPI transaction limit for person-to-merchant (P2M) payments")
- Existing Limits: Previously, UPI transactions for P2M payments were capped at ₹1 lakh for most cases, though some categories already had higher limits, like ₹2 lakh or ₹5 lakh.
- NPCI’s Role: NPCI can now consult with banks and stakeholders to set new transaction limits based on evolving user needs.
- Impact on Sectors: Industries such as healthcare, education, travel, and retail will benefit from higher limits, as they often involve high-value payments.
- Boost to Digital Economy: This move is expected to encourage wider adoption of UPI and strengthen India’s digital payment ecosystem.
- Security Measures: Safeguards will be implemented to mitigate risks associated with higher transaction limits.
Question:
Q.1 What was the previous cap on UPI transactions for person-to-merchant (P2M) payments before the RBI's revision on April 9, 2025?a) ₹50,000
b) ₹1 lakh
c) ₹2 lakh
d) ₹5 lakh
Answer: b) The previous limit for UPI transactions for P2M payments was capped at ₹1 lakh for most cases, although some categories had higher limits.
