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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

NPCI - Addendum to OC 185A- Implementation of Higher Per-transaction Limit for Specific Categories in UPI

28-Aug-2025 | NPCI/UPI/2024-25/OC/185B

National Payments Corporation of India (NPCI) has issued Addendum to OC 185A- Implementation of higher per transaction limit for specific categories in UPI. Since UPI is becoming a preferred payment method, there was a need to increase the per-transaction limit for certain categories. The per-transaction value limit in UPI was enhanced to Rs. 5 lakhs for merchants under categories aligned to hospitals and educational services. This enhanced limit, applicable only to 'Verified Merchants', was issued through Operating Circular (OC) 185 - NPCI/UPI/OC-185/2023-24 dated 19th December 2023. Further, through OC 185A - NPCI/UPI/2024-25/OC/185A dated 24th August 2024, the per-transaction limit in UPI was extended to Rs. 5 lakhs for entities under tax payment categories. This higher limit also applies only to 'Verified Merchants' in the applicable category. Now, NPCI has again raised the per-transaction limit for entities under tax payment categories to Rs. 5 lakhs. Accordingly, the per-transaction limits for the categories listed in Annexure I pertaining to Capital Market, Insurance, Government e-Market Place (EMD Payments), Credit Card Bill Payments, Collections, Business/Merchant (Including Pre-Approved Payments), Jewellery, FX Retail use case with BBPS Platform, Digital Account Opening for Term Deposits and Digital Account Opening - Initial Funding have been increased, along with some additional guidelines. Member banks may set their own internal limits as per their policies, but within prescribed ceilings of NPCI. The per-transaction limit for P2P payments will remain the same as per existing guidelines. Members, Apps, and PSPs should note these enhancements, make necessary changes, and ensure compliance by 15th September 2025. For more information, please refer to attached circulars.

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