NPCI Raises UPI Transaction Cap to ₹5 Lakh for High-Value Payments

The National Payments Corporation of India (NPCI) has officially increased the transaction limit for Unified Payments Interface (UPI) to ₹5 lakh. The move is aimed at encouraging the use of digital payments for high-value transactions and widening the scope of UPI usage in the financial ecosystem. Previously, the maximum limit for UPI transactions was ₹1 lakh, which often restricted individuals and businesses from using the platform for larger payments. With the revised limit, UPI can now be used for more significant financial dealings, including medical expenses, education fees, and large utility bills. Industry experts believe this step will boost consumer confidence in UPI, making it a preferred mode of payment for both everyday purchases and major expenses. It also positions UPI as a strong alternative to traditional payment methods such as NEFT or IMPS. The higher cap is expected to benefit businesses as well, particularly in the healthcare, education, and travel sectors, where high-value payments are frequent. Merchants may also witness increased adoption of UPI as customers find it more convenient than carrying cash or using cards for larger transactions. NPCI officials stated that robust security measures and fraud detection mechanisms have been implemented to ensure safe transactions, even with the higher limit. This ensures that customers can continue to enjoy seamless digital payments with confidence.