The National Payments Corporation of India (NPCI) has announced that the transaction limit for UPI payments to hospitals and educational institutions will be increased to 5 lakh rupees. This decision comes as a result of the Reserve Bank of India’s (RBI) announcement on December 8, 2023, regarding the increase in transaction limits for certain categories.
To implement this change, banks, payment service providers (PSPs), and API applications have been given guidelines to increase the transaction limit for the relevant merchant categories. Additionally, purchasing organizations must add merchants to the verified merchant list only after thorough verification.
In order to avail of the higher transaction limit, merchants in the medical and educational services categories must offer UPI as a payment option. This increased limit will only apply to verified merchants, and compliance with the requirements will be expected by January 10, 2024.
It is worth noting that the standard UPI transaction limit for other categories such as capital markets (AMC, brokers, mutual funds, etc.), collections (credit card payments, loan repayments, installments), and insurance remains at 1 lakh rupees. However, this decision by the RBI and NPCI reflects the growing importance of UPI as a preferred payment method.
The increased UPI transaction limit for hospitals and educational institutions aims to facilitate larger payments in these sectors, providing greater convenience to customers. This development aligns with RBI’s goals of expanding and strengthening digital payment systems in India.
The RBI and NPCI’s increase in the transaction limit is a significant step forward in promoting a cashless economy and encouraging the adoption of digital payment solutions in key sectors such as healthcare and education. This move will undoubtedly contribute to the ongoing transformation of the payment landscape in India.
Source: NPCI (https://www.npci.org.in/)
The source of the article is from the blog qhubo.com.ni