Introduction: The National Payments Corporation of India (NPCI) recently issued circular NPCI/UPI/2023-24/OC/76A, introducing revisions in transaction limits for merchants under the Unified Payments Interface (UPI) system. This article delves into the details of the circular and its implications on UPI transactions.
Detailed Analysis: The circular highlights key amendments to transaction limits based on merchant segments and transaction types. Notable changes include disallowing P2P Intent-based transactions by Payer PSPs, restricting Intent-based transactions for offline non-verified merchants by Payee PSPs, and imposing a limit of INR 2000 for QR share & Pay transactions.
Furthermore, the circular maintains existing restrictions on certain transactions such as wallet loads, gift/prepaid cards, and QR mode payments. These guidelines aim to address the evolving UPI merchant landscape and mitigate associated risks effectively.
Stakeholders are urged to adhere to the revised guidelines, ensuring compliance by April 1, 2024. Failure to comply may lead to repercussions, emphasizing the importance of understanding and implementing the outlined directives.
Conclusion: The NPCI’s issuance of circular NPCI/UPI/2023-24/OC/76A signifies a proactive approach in regulating UPI transactions to safeguard against potential risks. By revising transaction limits and reinforcing compliance measures, the NPCI aims to enhance the security and integrity of the UPI ecosystem.
It is imperative for all UPI stakeholders to familiarize themselves with the updated guidelines and ensure timely compliance to avoid any disruptions in transaction processing. Through collective adherence to these directives, the UPI framework can maintain its reliability and trustworthiness, facilitating seamless digital payments across India.
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NATIONAL PAYMENTS CORPORATION OF INDIA
NPCl/UPI/2023-24/0C/ 76A
12th March 2024
To
All Members of UPI,
Dear Madam/Sir,
Subject: Revision in transaction limits based on merchant & transaction types Addendum to OC76
NPCI vide circular NPCl/UPI/2019-20/0C76 dated 31st October 2019, had released guidelines regarding transaction limits based on merchant segment and transaction types.
Considering the constantly expanding UPI merchant ecosystem and the impending risks which can arise, it is advised that the following guidelines to be taken note of and implemented by respective entities.
| Sr No | Description | Circular Reference & Remarks |
| 1 | Payer PSP shall ensure P2P Intent based transactions (Initiation mode ’04’ and ’05’) shall be disallowed. | NPCl/UPI/2019-20/0C/76A (New) |
| 2 | Payee PSP shall ensure Intent based transactions (Initiation mode ’04’) shall be disallowed for all ‘Offline’ non-verified merchants. | NPCI/UPI/2019-20/0C/76
(Modification) |
| 3 | QR share & Pay shall have a limit of INR 2000/- for all P2P transactions (Payer PSP to ensure that UPI app to identify the same). | NPCI/UPI/2019-20/0C/76
(Existing — No change) |
| 4 | QR share & Pay shall have a limit of INR 2000/- for all P2M (non-verified offline merchants) and Payer PSP to ensure that Payer UPI app identify the same. | NPCI/UPI/2019-20/OC/76
(Existing – No change) |
| 5 | Wallet load, Gift/Prepaid cards (MCC 6540) shall continue to be disallowed on ‘collect’ and QR mode payments as per the extant guidelines. | NPCI/UPI/2019-20/0C/76
(Existing – No change) |
All stakeholders to take cognizance of the above guidelines and ensure compliance effective
1St April 2024.
Yours sincerely,
Sd/-
Viswanath Krishnamurthy
Chief Risk Officer
