NEPC

UPI per transactions limit increased to Rs. 5 lakhs for tax payments

National Payments Corporation of India (NPCI) has increased the UPI per transaction limit to Rs. 5 lakhs for tax payments with effect from 15th September 2024

UPI per transactions limit has been increased to Rs. 5 lakhs for tax payments. Earlier, in 2021. NPCI w.e.f. 14th December 2021 has increased the said limit of UPI transactions to Rs. 5 lakhs for Retail Direct Schemes and UPI based ASBA IPO.

In view of the circular dated 24.08.2024, the per transaction value limit in UPI has now been enhanced to 5 lakhs for entities under categories aligned to tax payments. This enhanced limit shall only be applicable to ‘Verified Merchants’, in the applicable category.

It has been directed that to Implement the said increased limit:

1. Banks/PSPs/UPI Apps shall ensure that per transaction limit has been enhanced for the categories of verified merchants.

2. Acquiring entities must ensure that the classification of their merchants within ‘MCC- 9311’ strictly adheres to the tax payments only. They shall ensure that entities are added to the ‘Verified Merchant’ list after proper due diligence.

3. Merchants shall ensure UPI as a payment mode is enabled for the increased limit for the tax payments category.

The updated chart of the UPI per transaction limits for specified categories are as under:

CategoryIdentifierCircular Reference/Remark
Tax PaymentsMCC-9311New w.e.f. 15.09.2024
Hospital & Educational ServicesMCC- 8011, 8021, 8031, 8041, 8042,8049,8050, 8062, 8071, 8099,0742,8211,8220,8241, 8244,8249,8299Existing
IPO & G Sec through RBI Retail Direct Scheme (RDS)MCC 6211 Purpose Code- 01 (IPO), 25 (RDS)Existing

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