RBI has taken a big decision to make digital payment easier and better. Now when a customer makes payment (UPI Merchant Transaction) to a shopkeeper or merchant through Unified Payments Interface (UPI), the limit of that transaction will be decided by the National Payments Corporation of India i.e. NPCI.
Currently, the limit for person-to-person and person-to-merchant payments is Rs 1 lakh. However, in some special cases, this limit for merchant payments is also up to Rs 2 lakh and Rs 5 lakh.
Aim to further improve the UPI ecosystem
RBI Governor Sanjay Malhotra said after the Monetary Policy Committee (MPC) meeting on Wednesday that the purpose of this decision is to make the UPI system more smart and user-friendly. Now NPCI will decide the transaction limit (UPI Transaction limit) for different categories as per the need.
Banks will also get the right to fix the limit
Although NPCI will set a limit, banks can also set their own internal limits within that limit. RBI has also clarified that the current limit of person-to-person transactions (UPI Person-to-Merchant Payment) will remain at Rs 1 lakh.
Security will also be given full attention
Governor Sanjay Malhotra said that if the limit increases, then necessary security systems will also be installed to reduce the risks associated with it. For this, a decision will be taken after talking to banks and other payment partners.
New record of UPI transaction
According to RBI, there was a tremendous increase in UPI transactions in March 2024. This month there were 18.3 billion transactions, which is 13.59% more than the 16.11 billion transactions in February. In terms of value, transactions worth Rs 24.77 lakh crore took place in March, which is 12.79% more than in February.
On a daily basis, now on an average, more than 590 million transactions are happening every day through UPI, whose value is around Rs 79,910 crore.
The growth of UPI is also excellent
According to another report, UPI transactions have increased by 42% year-on-year to 93.23 billion in the second half of 2024. This shows that the digital payment system in India is growing rapidly and people are adopting UPI in large numbers.
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