RBI Allows NPCI to Raise UPI Transaction Limits for P2M Payments

In a move aimed at supporting the growing adoption of digital payments in India, the Reserve Bank of India (RBI) on Wednesday granted approval to the National Payments Corporation of India (NPCI) to increase the transaction limits on Unified Payments Interface (UPI) for person-to-merchant (P2M) payments.

The decision, announced in Mumbai, allows NPCI to revise the P2M transaction limits based on evolving user demands and the increasing scale of digital transactions in the country.

“Recognizing the rapid rise in UPI-based P2M transactions and the need for greater flexibility, the RBI has permitted NPCI to review and enhance the transaction caps,” the central bank stated.

NPCI, the umbrella organization responsible for managing India’s retail payment systems, oversees the functioning of UPI—a real-time payment system that facilitates instant money transfers between bank accounts via mobile apps.

The RBI’s directive is expected to boost merchant acceptance of UPI and enable higher-value transactions, further strengthening the digital payment ecosystem.

Details on the revised limits are expected to be released by NPCI in the coming days.