P2M Transaction Limit: Currently, the limit for P2M transactions in the country is Rs 1 lakh per day. Now RBI has given permission to increase it.
Apart from cutting the interest rates, the Reserve Bank of India (RBI) has taken many other decisions which will affect the common man. RBI has decided to allow the National Payments Corporation of India (NPCI) to revise the transaction limit through UPI from ‘customers to shopkeepers’ as per the needs of the economy.
However, the limit of transaction through UPI between one person to another will remain one lakh as before. Currently, the limit of ‘Person to Merchant’ (P2M) is one lakh rupees per day. However, in cases like stock market, insurance, the payment limit is Rs 2 lakh per transaction, while for tax payment, educational institutions, hospitals, IPO, the payment limit is Rs 5 lakh.
What did the RBI Governor say
RBI Governor Sanjay Malhotra, while presenting the first bi-monthly monetary policy review of the current financial year on Wednesday, said that it has been proposed to allow NPCI to revise the transaction limit through UPI from person to businessmen.
According to the statement of the central bank, “In new use cases as per the needs of the economy, NPCI, in consultation with banks and other parties involved in the UPI ecosystem, may announce and revise such limits based on the changing needs of the user.”
What is a P2M transaction
“Person to Merchant” is a term associated with digital payments. When a person makes a payment to a merchant/shopkeeper through UPI or digital means, it is called a P2M transaction.
RBI said that banks will continue to have the discretion to set their internal limits within the limits declared by NPCI. RBI also said that appropriate security measures will be taken to minimize the risks associated with high limits.
