RBI’s big decision regarding UPI, now NPCI will decide the limit of merchant transaction, know what will change for you
New Delhi:
The RBI has taken a big decision to make digital payments easier and better. Now when a customer will make a shopkeeper or merchant transaction to the shopkeeper or merchant through Unified Payments Interface (UPI), the limit of that transaction will be decided by the National Payment Corporation of India i.e. NPCI.
Currently, the limit of Person-to-Person and Person-to-CRINT Payment is one lakh rupees. However, in certain cases, this limit for merchant payment is also up to Rs 2 lakh and Rs 5 lakh.
The purpose of improving UPI Ecosystem further
RBI Governor Sanjay Malhotra said after the Monetary Policy Committee (MPC) meeting on Wednesday that the decision of this decision is to make the UPI system more smart and user-friendly. Now the NPCI will set the UPI Transaction Limit for different categories according to the need.
Banks will also get the right to fix the limit
The NPCI may set a limit, but banks can also set their own internal limit within that limit. The RBI has also made it clear that the current limit of Person-to-Person Transaction will be Rs 1 lakh.
Security will also be taken care of
Governor Sanjay Malhotra said that if the limit increases, then the security system required to reduce the risks related to it will also be installed. For this, a decision will be taken after talking to banks and other payment partners.
New record of UPI transaction
According to the RBI, there was a tremendous increase in UPI transactions in March 2024. There were 18.3 billion transactions this month, 13.59% more than 16.11 billion transactions of February. In the case of value, there was a transaction of Rs 24.77 lakh crore in March, which is 12.79% more than in February.
On a daily basis, now more than 590 million transactions are being done through UPI every day, whose value is around Rs 79,910 crore.
UPI’s growth is also fantastic
According to another report, the UPI transaction has increased by 42% to 93.23 billion in the second half of 2024. This shows that the digital payment system in India is constantly moving forward and people are adopting UPI in large numbers.