Daily UPI Payments to Get a Boost? RBI Green Lights NPCI to Announce New Limit Beyond ₹1 Lakh! Check

The Reserve Bank of India (RBI) has made a significant announcement that could pave the way for increasing the UPI transaction limits. In a major decision taken during the 54th meeting of the Monetary Policy Committee (MPC), the central bank has proposed handing over more control to the National Payments Corporation of India (NPCI) to revise limits on UPI person-to-merchant (P2M) payments.

Currently, the UPI transaction limit is ₹1 lakh for both person-to-person (P2P) and person-to-merchant (P2M) transfers, with some exceptions allowing ₹2 lakh or ₹5 lakh in specific cases. But with the latest RBI move, this ceiling may soon be revised.

RBI Proposes NPCI-Led Revisions in UPI Transaction Limits

As digital payments gain wider acceptance, the RBI believes that the UPI ecosystem must evolve to match growing user demands. Governor Sanjay Malhotra stated that NPCI, in consultation with banks and other stakeholders, will be empowered to review and update UPI transaction limits based on market needs.

This shift means that instead of the RBI directly fixing the UPI transaction limits, NPCI will now play a central role. However, individual banks will retain the freedom to set their own internal ceilings, as long as they remain within the NPCI's updated cap.

Importantly, P2P transactions via UPI will continue to be capped at ₹1 lakh. The changes will primarily affect P2M transactions, where revisions are expected in due course.

Rapid Rise in UPI Usage Strengthens the Case

The decision comes at a time when UPI usage in India is hitting new records. In March alone, UPI recorded 18.3 billion transactions — up 13.59% from February’s 16.11 billion.

In terms of value, UPI payments soared to ₹24.77 lakh crore in March, marking a 12.79% increase from February. This reflects the growing dependence of Indian users on digital modes of payment.

NPCI’s Role Becomes More Crucial in the Evolving UPI Landscape

With UPI now a backbone of India’s digital economy, NPCI’s role is becoming more significant. As the key operator of the UPI system, NPCI is best positioned to understand usage trends and adapt the system accordingly.

Going forward, it will decide — in coordination with banks — if and when the UPI transaction limits for merchants should be raised.

RBI, MPC and NPCI Drive India’s Digital Growth Story

This announcement from the RBI’s MPC highlights the joint effort of the central bank, NPCI, and commercial banks in pushing India’s digital journey forward. As the digital payment space matures, flexible frameworks like this ensure that UPI remains relevant, fast, and user-centric.

By gradually increasing the P2M UPI transaction limits, the RBI and NPCI aim to make the payment system even more useful for high-value merchant payments — while maintaining appropriate risk safeguards.