You can now make UPI payments to hospitals and educational services up to Rs 5 lakh

According to an NPCI circular dated December 19, 2023 “With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories, as per the RBI Statement on Developmental and Regulatory Policies, dated 81h December 2023. In view of the above, the per transaction value limit in UPI has now been enhanced to 5 lakhs for merchants under categories aligned to hospitals and educational services. This enhanced limit shall only be applicable to ‘Verified Merchants’. Members are requested to ensure compliance with the same by 10th January 2024.”

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1. Banks, PSPs, and API apps must make sure that the per transaction limit has been increased for the merchant categories listed above.
2. Acquiring organisations are responsible for making ensuring that, following appropriate due diligence, merchants are added to the Verified Merchant list.
3. In order to get the higher limit for these categories, merchants must guarantee that UPI is available as a payment option.

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With a few exceptions, such as capital markets (AMC, broking, mutual funds, etc.), collections (credit card payments, loan repayments, EMI), insurance, etc., where the transaction limit is Rs. 2 lakh, the standard UPI transaction limit is restricted at Rs. 1 lakh.

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According to the NPCI FAQs on UPI, “For normal UPI the transaction limit is up to Rs 1 Lakh per transaction. For few specific categories of transaction in UPI like Capital Markets, Collections, Insurance, Foreign Inward Remittances the transaction limit is up to 2 lakh and for Initial Public Offering and Retail Direct Scheme the limit is up to Rs 5 lakh per transaction.”

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Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS (Immediate Payment Service) infrastructure and allows you to instantly transfer money between any two parties’ bank accounts.

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The different channels for transferring funds using UPI are:

a.Send/Collect through Virtual ID
b.Account Number + IFSC
c.Aadhaar Number

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