The Reserve Bank of India (RBI) has announced a significant boost for UPI users by increasing the payment limit from ₹1 lakh to ₹5 lakh.
During a press briefing following the three-day bimonthly Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das highlighted UPI’s growing popularity as a preferred payment method due to its convenience. He confirmed that the MPC has decided to raise the UPI payment limit to ₹5 lakh, a substantial increase from the current ₹1 lakh limit.
Governor Das explained that the RBI reviewed payment limits across various use cases and decided on this increase. The new limit will apply to categories such as capital markets, IPO subscriptions, loan recovery, insurance, and services related to healthcare and education.
The decision to raise the UPI payment cap was driven by the routine, high-value nature of direct and indirect tax payments. Das assured that further instructions regarding this change will be issued separately.
In addition, the RBI is considering public disclosure of data on digital lending apps to help investigate unauthorized companies.
UPI continues to gain traction, with the user base now reaching 42.4 crore, according to RBI data. The introduction of ‘Delegated Payments’ in UPI is expected to further expand digital payment adoption across India.
The Unified Payments Interface (UPI) has seen a 45% annual growth in transaction volume, with a transaction value increase of over 35%, totaling ₹20.64 trillion, according to the National Payment Corporation of India (NPCI). This marks the third consecutive month with transactions exceeding ₹20 trillion.
In June 2024, the total UPI transaction value stood at ₹20.07 trillion, while in May it was ₹20.44 trillion. NPCI data also revealed that the average daily transaction value via UPI in July 2024 was ₹466 million, approximately ₹66,590 crore. Compared to June, UPI transaction volume grew by 3.95% in July, with transaction value rising by 2.84%.