NPCI Will Have The Freedom To Decide P2M Transaction Limits In UPI: RBI

On the concluding day of the Monetary Policy Committee (MPC) meeting on April 9, 2025, the Reserve Bank of India (RBI) made a significant announcement regarding person-to-merchant (P2M) UPI transactions.

RBI Governor Sanjay Malhotra, in his speech, said that the NPCI will review the transaction limits for P2M UPI payments and have the freedom to revise them if needed.

He announced that NPCI, in consultation with banks and other stakeholders, will decide the transaction limits in UPI for P2M transactions.

Malhotra stated, “We will give the freedom to NPCI in consultation with other stakeholders to revise it as per the needs of the economy”.

Note that, at present, the P2M Unified Payments Interface (UPI) transaction limit is Rs 2 lakh per transaction.

He also clarified that “the P2P transaction limit, which is Rs 1 lakh as of now, will remain the same, and there is no change with regard to the regulations regarding P2P limits".

UPI:

UPI, which is the fastest-growing transaction payment system in India, is governed by the NPCI. It sets the UPI transaction limits for different types of transactions. These limits are standardised, and users cannot change them, they have to adhere to these limits regarding the number of transactions per day and the maximum value per transaction.

With its different variants, it offers online, offline, and wallet transaction facilities. Unlike banks, it works 24 hours and instantly transfers the amount to the other party, whether it is another person or a merchant. The ease of use, faster processing, and availability on mobile phones make UPI the most preferred choice of payments, especially for small-value transactions.

UPI Limit Enhancement In 2024:

In August 2024, the RBI MPS decided to enhance the limits for certain UPI transactions. It had decided to enhance the transaction limit from Rs 1 lakh to Rs 5 lakh per transaction for tax payment transactions to make tax payment easier for consumers.    

Growth Of UPI Transaction Volume Per Day:

UPI was launched in India in 2016. Its growth is evident in the data. If we look at the month-wise data, in March 2025, an average 590.37 million UPI transactions were done daily compared to 433.55 million average daily transactions in the same month in 2024.

In March 2023 and March 2022, there were an average 280.17 million and 174.38 transactions, respectively, per day.