Blitz Bureau
New Delhi, April 9 In order to further boost digital payments, the National Payments Corporation of India will be enabled to set the limit on person-to-merchants transactions via Unified Payments Interface (UPI), RBI Governor Sanjay Malhotra said on Wednesday.
At present, the transaction amount for UPI, covering both person-to-person (P2P) and person-to-merchant payments (P2M), is capped at Rs 1 lakh, except for specific use cases of P2M payments which have higher limits, some at Rs 2 lakh and others at Rs 5 lakh.
“To enable the ecosystem to respond efficiently to new use cases, it is proposed that NPCI, in consultation with banks and other stakeholders of the UPI ecosystem, may announce and revise such limits based on evolving user needs,” said Malhotra after the 54th meeting of the monetary policy committee (MPC).
Appropriate safeguards will be put in place to mitigate risks associated with higher limits. Banks shall continue to have the discretion to decide their own internal limits within the limits announced by NPCI.
“P2P transactions on UPI shall continue to be capped at Rs 1 lakh, as hitherto. NPCI will be advised accordingly,” according to the Central Bank.
The payment systems operator will take the decision in consultation with banks and other shareholders, the RBI chief said during the monetary policy announcement.
Meanwhile, the saw a 13.59 per cent increase (on-month) in transaction volume at 18.3 billion in the month of March, from 16.11 billion in February.
The month of March saw a record Rs 24.77 lakh crore worth UPI-based transactions, up 12.79 per cent from Rs 21.96 lakh crore in February, according to the NPCI data.
On a daily basis, the UPI network recorded more than 590 million average transactions at Rs 79,910 crore daily transaction count.
On a year-on-year basis, the record-breaking UPI transactions of Rs 24.77 lakh crore in March marked a 25 per cent surge in value and an impressive 36 per cent growth in volume, demonstrating the unstoppable momentum of India’s digital payments revolution.
With daily transactions averaging Rs 79,910 crore, up 1.9 per cent from February, and volumes rising 2.6 per cent, these numbers underscore the rapid adoption and trust in digital financial solutions. (IANS)