National Payments Corporation of India will be enabled to set the limit on person-to-merchants transactions via UPI, said RBI Governor Sanjay Malhotra on Wednesday.
The limit on person-to-person UPI transactions will remain unchanged at Rs 1 lakh, Malhotra clarified.
The payment systems operator will take the decision in consultation with banks and other shareholders, the RBI chief said during his monetary policy announcement.
The Monetary Policy Committee slashed policy repo rate by 25 basis points today to 6%, while changing its stance to accommodative from neutral.
The limit on person-to-merchant transactions currently stands at Rs 2 lakh. NPCI, which operates the Unified Payments Interface, or UPI, will be given the freedom to change this limit after consulting with involved stakeholders, Malhotra said.
As per India Digital Payments report for 2H 2024 report by Worldline, UPI transaction volumes surging 42 per cent year-on-year (YoY) to reach 93.23 billion in the second half of 2024.
During this period, volume of person-to-merchant UPI transactions grew from 38.73 billion to 58.03 billion, marking a 50% increase, while the value increased 43%.
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