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

P2P transactions on UPI shall continue to be capped at Rs 1 lakh

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The Reserve Bank of India (RBI) on Wednesday authorised the National Payments Corporation of India (NPCI) to revise transaction limits on India’s flagship real-time payments platform, Unified Payments Interface (UPI), based on evolving user needs.

 

This revision in limits on UPI has to be done in consultation with stakeholders of the UPI ecosystem and the banks, the RBI said.

 

Currently, the transaction amount for UPI, covering both person-to-person (P2P) and person-to-merchant payments (P2M), is capped at ₹1 lakh except for specific use cases of P2M payments which have higher limits, some at ₹2 lakh and others at ₹5 lakh.

 

“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.

 

However, it stated that appropriate safeguards will be put in place to mitigate risks associated with higher limits, and banks will continue to have the discretion to decide their own internal limits within the limits announced by NPCI.

 

Having said that, peer-to-peer (P2P) transactions on the UPI will still have a maximum limit of ₹1 lakh, just as it has been in the past, the RBI said.

 

UPI transactions reached record highs in both value and volume in March 2025, clocking ₹24.77 trillion and 19.78 billion transactions, respectively. This is the first time UPI value has crossed ₹24 trillion and transactions have surpassed 19 billion since the system became operational in April 2016.

 

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