UPI doubles limit for credit card, mutual fund payments

BENGALURU: The

National Payments Corporation of India

(NPCI), which manages the digital payments network -

Unified Payments Interface

(UPI), has doubled the per transaction limit to Rs 2 lakh for specific needs like payments for credit cards, loans, insurance, and

mutual fund

investments. In a circular to its partner banks dated March 3, reviewed by TOI, the umbrella payments body announced the changes, effective from next month.


This will further increase the usage and adoption of UPI among consumers who want to make these payments that are large in size. As per people aware of the matter, industry members were lobbying for this change with NPCI as many leading UPI platforms like PhonePe and Paytm are looking at financial services and other segments where consumers can make such payments via UPI.


“With UPI emerging as a preferred payment method, there is an increase in demand to extend the per transaction limit in UPI which is presently Rs 1 lakh to Rs 2 lakh per transaction for specific use-cases,” the NPCI circular said. It said the payments body might add incremental categories to this enhanced limit as and when required. Since October last year, UPI has clocked over one billion transactions each month, including 1.32 billion transactions in February.

“Consumers will greatly benefit from this increase as it will provide an opportunity to millions of customers to use UPI at trusted merchants and for diverse financial use-cases. We will work with our partners to further amplify the usage of UPI," said

Hemant Gala

, head of bank relations, PhonePe.

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