The National Payments Corporation of India, (NPCI) on August 24, 2024, issued a notification regarding the Addendum to OC 185-Implementation of Rs 5 Lakh limit per transaction for specific categories in UPI.
The per transaction value limit in UPI has been increased to ₹5 lakhs for entities categorized under tax payments. This enhanced limit is exclusively available to 'Verified Merchants' in the specified category.
To implement this change, banks, PSPs, and UPI apps must ensure that the new transaction limit is applied to verified merchants. Acquiring entities are responsible for correctly classifying merchants within 'MCC-9311' to cover only tax payments and must add entities to the 'Verified Merchant' list after thorough due diligence. Merchants should ensure UPI payment mode is enabled for the increased limit in the tax payments category.
All relevant parties, including PSPs, banks, UPI apps, merchants, and payment providers, are required to comply with these updates by September 15, 2024.
[Notification No. NPCI/UPI/2024-25/OC/185A]
