RBI Revises UPI Transaction Limits for P2M Payments, Keeps P2P Unchanged
| Aspect | Details |
|---|---|
| Event | RBI authorizes NPCI to revise UPI P2M transaction limits (April 9, 2025) |
| Key Decision | NPCI allowed to revise Person-to-Merchant (P2M) transaction limits under UPI based on evolving use cases. P2P limits remain unchanged at ₹1 lakh. |
| Current UPI Limits | General limit: ₹1 lakh for both P2P and P2M. Exceptions for P2M: Up to ₹2 lakh or ₹5 lakh for education, healthcare, and credit card bill payments via UPI. |
| Banks' Role | Banks can set internal limits within the NPCI-defined range. |
| Rationale | To provide flexibility for merchants and users, support innovation, and meet growing adoption of digital payments. |
| Risk Management | Appropriate safeguards will be implemented to manage risks from higher limits. |
| Additional Announcements | Gold Loan Guidelines: RBI to issue harmonized norms across regulated entities. Draft to be released for public consultation. |
| Regulatory Sandbox (RS) | RS to be theme-neutral and on tap, allowing continuous innovation. |
| Securitisation of Stressed Assets | Draft framework to enable market-based mechanisms beyond the ARC route under SARFAESI Act, 2002. |
| Co-Lending Framework | Expansion beyond banks and NBFCs. Generic framework to foster sustainable lending partnerships and widen credit access. |