RBI Greenlights NPCI Set UPI: Now, the National Payments Corporation of India, i.e. NPCI, can itself decide the payment limit for person-to-merchant. RBI Governor Sanjay Malhotra informed about this decision after the meeting of the Reserve Bank’s Monetary Policy Committee (MPC), which ran from 7 to 9 April.
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RBI Greenlights NPCI Set UPI: UPI Limit May Increase
RBI Governor Sanjay Malhotra said that keeping in mind the needs of UPI users, NPCI will now be allowed to decide the UPI transaction limit by talking to banks and other stakeholders. This means that now RBI will not fix the limit itself but will hand over this task to NPCI.
Currently, the payment limit for person-to-merchant is Rs 2 lakh. This decision of RBI means that NPCI, which regulates UPI, can now increase or decrease the limit of Rs 2 lakh. The limit for person-to-person UPI transactions will remain at Rs 1 lakh.
Person-to-Person and Person-to-Merchant Person-to-Person (P2P)
A payment limit means the maximum amount a person can transfer to another person via UPI. This limit is currently Rs 1 lakh. The Person-to-Merchant (P2M) payment limit is the maximum amount a person can transfer to a business or merchant via UPI. This limit is currently Rs 2 lakh.
RBI Greenlights NPCI Set UPI: UPI Growth Spurs Key Decision
UPI usage reached a record level in March. Compared to February, the number of UPI transactions in March increased by 13.59% to 18.3 billion. In terms of value, UPI transactions worth ₹24.77 lakh crore took place in March, which is 12.79% more than February.
RBI Policy: Top 3 Points
- The Reserve Bank of India (RBI) has reduced the repo rate by 0.25% to 6%. Earlier it was 6.25%. After this reduction, loans may become cheaper in the coming days. Your EMI will also decrease.
- There was a 0.25% reduction in February as well. Earlier, in the last meeting of the financial year 2024-25, RBI cut interest rates by 0.25%. In the meeting held in February, interest rates were reduced from 6.5% to 6.25%. This reduction was made by the Monetary Policy Committee after about 5 years.
- Growth and inflation forecast for FY26: RBI Governor Sanjay Malhotra said that India’s real GDP growth is expected to be 6.5% in the financial year 2025-26. Retail inflation (CPI) is likely to remain around 4%. The governor said that the focus of monetary policy will be on controlling inflation while maintaining growth.
RBI Greenlights NPCI Set UPI: UPI is operated by NCPI in India
The operation of RTGS and NEFT payment systems is with RBI. Systems like IMPS, RuPay, UPI are operated by the National Payment Corporation of India (NPCI). The government had made a zero-charge framework mandatory for UPI transactions from 1 January 2020.
RBI proposes to allow NPCI to revise UPI transaction limit for person to merchant as per needs of economy
— Press Trust of India (@PTI_News) April 9, 2025
We are aiming for non-inflationary growth built on foundation of improved demand and sustained macroeconomic balance: RBI Guv
RBI to remain agile and will put in place… pic.twitter.com/Rh7LoDWMeQ
This new initiative of RBI shows that efforts are being made to further improve the digital payment system in the country. Gradually increasing the P2M UPI transaction limit will facilitate merchant payments and the use of UPI will also increase in large transactions. Along with this, necessary safety and security measures will also be adopted.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗