The National Payments Corporation of India (“NPCI”) has informed that the per transaction value limit in UPI has been enhanced to Rs. 5 lakhs for entities under categories aligned to tax payment. This enhanced limit will be applicable to ‘Verified Merchants’ in the applicable category.
In this regard, the following directions have been issued:
- Banks/UPIs and PSPs have to ensure that the per transaction limit has been enhanced for the specific category of verified merchants (tax payment).
- Acquiring entities must ensure that the classification of merchants strictly adheres to the tax payments only. They have to ensure that entities are added to the list of verified merchants post proper due diligence.
- Merchants must ensure that UPI as a payment mode is enabled or the increased limit for tax payment category.
Accordingly, UPI Apps, Merchants and other payment providers have to comply with the requirement by 15th September, 2024.
Background:
In December, 2023 NPCI had increased the per transaction limit for verified merchants aligned to hospitals and educational services from Rs. 1 Lakh to Rs. 5 Lakhs which was implemented by 10th January, 2024. Now this enhanced limit is being extended to tax payments. In light of this, the present circular is issued.
Source: National Payments Corporation of India
