Allows relaxation in UPI transaction limits for merchant payments made face-to-face, according to RBI decision
The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, has announced changes to the transaction limits for Unified Payments Interface (UPI) payments. These adjustments will primarily affect in-person merchant payments through UPI.
In consultation with banks and stakeholders, the National Payments Corporation of India (NPCI) will have the flexibility to revise transaction limits for these in-person merchant payments. However, the specific details of the revised transaction limits for Person-to-Merchant (P2M) payments are not yet disclosed.
The announcement does not specify if there will be any changes to the current cap for Person-to-Person (P2P) UPI transactions, which remains at ₹1 lakh. Similarly, the changes to UPI transaction limits will not affect the transaction limits for online UPI payments.
The revisions for P2M payments will be implemented with safeguards in place, ensuring a secure and efficient payment system. The specific details of these safeguards are not provided in the announcement.
It is important to note that the announcement does not mention any potential impact on non-UPI digital payment methods.
Regarding the timeline for these changes, the announcement does not provide any specific details. The NPCI will continue to work closely with banks and stakeholders to ensure a smooth implementation of the revised transaction limits for P2M payments, which will be determined based on user needs.
In conclusion, the RBI Governor's announcement marks a significant step towards enhancing the UPI payment system, particularly for in-person merchant payments. More details about the specific changes and their implementation timeline are expected to be released in due course.
