The National Payments Corporation of India (NPCI) has issued an addendum to Circular OC 185, enhancing the Unified Payments Interface (UPI) transaction limit to ₹5 lakhs for specific categories. This update is aimed at verified merchants involved in tax payments, following similar limit increases noted in past circulars. Banks, Payment Service Providers (PSPs), and UPI apps are required to implement this new limit for categories like tax payments, while ensuring compliance by September 15, 2024. The circular mandates that acquiring entities accurately classify merchants within the designated MCC codes and ensure UPI payment options reflect the new limit. Existing limits for other categories, such as hospitals and educational services, remain unchanged. Members are advised to adhere to these updates to facilitate smoother transactions within the specified categories.
NATIONAL PAYMENTS CORPORATION OF INDIA
NPCl/UP1/2024-2510C/185A 24th August 2024
To
All Members of UPI,
Dear Madam/Sir,
Subject: Addendum to OC 185 – Implementation of Rs 5 Lakh limit per transaction for specific categories in UPI
With UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories. This proposed enhancement aligns with previous limit enhancements implemented through circulars such as NPCl/UP1/0C-127/2021-2022 dated 9th December 2021 and NPCI/UPI/0C-185/2023-2024 dated 19th December 2023.
In view of the above, the per transaction value limit in UPI has now been enhanced to Rs. 5 lakhs for entities under categories aligned to tax payments. This enhanced limit shall only be applicable to ‘Verified Merchants’, in the applicable category.
To enable this enhancement:
1. Banks/PSPs/UPI Apps shall ensure that per transaction limit has been enhanced for the categories of verified merchants. (Refer Annexure)
2. Acquiring entities must ensure that the classification of their merchants within `MCC-9311′ strictly adheres to the tax payments 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.
With reference to the above and its annexure, Members (PSPs & Banks), UPI apps, Merchants and other payment providers are requested to take note of the above enhancement, undertake requisite changes.
Members are requested to ensure compliance with the same by 15th September 2024.
Yours sincerely,
SDI-
KunaI Kalawatia
Chief of Products
Annexure to OC 185A
Implementation of Rs 5 Lakh limit per transaction for specific categories in UPI
Regarding circular no. NPCl/UPI/ 2024-25/0C-185A, which pertains to the implementation of a Rs 5 Lakh limit per transaction for verified merchants in specific categories in UPI –
| Category | Identifier | Circular reference & Remarks |
| Tax Payments | MCC – 9311 | NPCl/UPI/2024-25/0C-185A (New) |
| Hospitals and Educational Services | MCC – 8011, 8021, 8031, 8041, 8042, 8049, 8050, 8062, 8071, 8099, 0742, 8211, 8220, 8241, 8244, 8249, 8299 | NPCl/UP I/2023-24/OC-185(Existing — No Change) |
| IPO & G Sec through RBI Retail Direct Scheme (RDS) | MCC 6211, Purpose Code-01 (IPO), 25 (RDS) | NPCl/UPI/OC-127/2021-22 (Existing — No Change) |
Note:
1. For RuPay Credit Card on UP!, transaction limits shall be followed as per NPCl/2023-24/RuPay/022.
2. The annexure is solely intended for the use of UPI members.
