The Reserve Bank of India’s (RBI) Governor Shaktikanta Das on Wednesday announced to raise the transaction limits of UPI 123 and UPI Lite, thus expanding the scope of UPI for an increasingly large number of people. While acknowledging that Unified Payments Interface (UPI) has transformed India’s financial landscape by making digital payments more inclusive, the banking regulator’s boss announced to widen the scope of small value digital payments by raising their limits considerably.
Now, UPI 123Pay transaction limit has been raised from ₹5,000 to ₹10,000. At the same time, the limit of UPI Lite that enables PIN-less offline transaction has been raised from ₹5,000 to ₹10,000. The limit of transaction, meanwhile, has been raised to ₹1,000 (from ₹500 earlier).
New transaction limit is ₹10,000 (from ₹5,000)
New wallet limit is ₹10,000 (from ₹5,000)
New transaction limit is ₹1000 (from ₹500)
Peer-to-peer (P2P) credit limits
NPCI on Sept 4 released a circular wherein it set the limits of users to receive funds in their bank account via peer-to-peer (P2P) credit in 24 hours.
These are the UPI limits relating to P2P payments which the banks are supposed to implement with effect from Sept 30, 2024.
I. P2P credit: Upto 25 successful transactions OR cumulative ₹4 lakh in a period of 24 hours and transactions < ₹2,000 are excluded.
II. P2P credit will be capped at 50 successful transactions in a period of 24 hours.
Limit: 50 transactions in 24 hours
Auto-top up
It is noteworthy to mention here that the users can opt for auto top-up of UPI LITE account subject to the wallet limit (which is ₹10,000 now). This new facility will offer convenience to the users who will now be able to automate the process of reloading of funds.
They will have the option to revoke the auto top-up mandate at any point of time by the payment service provider/App. The number of auto replenishment transactions, meanwhile, are limited to 5 in a day per LITE account, stipulates the NPCI circular dated August 27, 2024.
Limit: 5 transactions in a day
Interoperable cash deposit using UPI
There is an addition to the current set of functionalities with regards to UPI wherein users are allowed to make interoperable cardless cash deposits (ICD) using UPI at cash deposit/ cash re-cycler machines deployed by the banks and white label ATM operators.
This was announced in an NPCI circular dated Aug 16, 2024. The transaction limit for UPI-ICD was set to be ₹50,000 per transaction.
Limit: ₹50,000 per transaction
