The Reserve Bank of India (RBI) has allowed the National Payments Corporation of India (NPCI) to revise transaction limits for person-to-merchant (P2M) payments on the Unified Payments Interface (UPI).

The decision to raise the limits was announced by the RBI governor Sanjay Malhotra during the first policy review meeting of FY26.

At present, UPI transactions for both person-to-person (P2P) and P2M are capped at Rs 1 lakh. In some merchant categories such as education and healthcare, the cap is at Rs 5 lakh. 

With this, NPCI can now revise such these limits in consultation with banks and stakeholders.

"To enable the ecosystem to respond efficiently to new use cases, it is proposed that NPCI, in consultation with banks and other stakeholders of the UPI ecosystem, may announce and revise such limits based on evolving user needs. Appropriate safeguards will be put in place to mitigate risks associated with higher limits. Banks shall continue to have the discretion to decide their own internal limits within the limits announced by NPCI," RBI said in a statement.

P2P transactions on UPI shall continue to be capped at Rs 1 lakh.