New Delhi: In a recent move, the National Payments Corporation of India (NPCI) has set a deadline for compliance by January 10th for banks and payment service providers (PSPs) to follow the banking regulator’s directive.
Read More: Godrej Consumer expects to deliver mid-single digit volume growth in Q3
This directive aims to increase the UPI transaction limit to Rs 5 lakh for transactions related to hospitals and educational services, as reported by Business Standard.
NPCI is encouraging banks, PSPs, and UPI applications to adjust their transaction limits specifically for certain types of businesses, aligning with this new update.
This means that transactions related to hospitals and educational services can now go up to Rs 5 lakh, a significant increase from the previous limit of around Rs 1 lakh.
Vishwas Patel, Joint Managing Director of Infibeam Avenues, sees this as a positive step, especially considering the rising average transaction size in these sectors. He believes that implementing these changes by January 10th should not pose significant challenges.
Read More: Dense fog, cold wave grip Delhi-NCR; north India sees mercury plunge
PhonePe has also confirmed that they are on track to make the necessary changes for users as per the provided timelines.
It’s essential to note that the increased transaction limit of Rs 5 lakh applies only to “verified merchants.” In a circular, NPCI has urged members, including PSPs, banks, UPI apps, and merchants, to take note of this enhancement and make the required changes. Compliance with these updates is expected by January 10, 2024.
Merchants are required to activate UPI with these enhanced limits, and the responsibility of verifying and adding merchants to the verified list lies with acquiring entities after conducting due diligence.
Read More: BIG Day For ISRO! Aditya L-1 To Enter Final Ordbit Today, Here’s What It Means
PhonePe clarified that, in their role as a third-party application provider (TPAP), they do not handle the due diligence for merchants. Instead, the merchant acquirer is responsible for this process. However, PhonePe, acting as an acquirer, also has its internal due diligence process to ensure compliance with regulatory requirements.
