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In a significant development for digital payments in India, the Reserve Bank of India (RBI) has authorized the National Payments Corporation of India (NPCI) to revise the transaction limit for UPI payments from individuals to merchants (P2M) based on financial requirements. This major change was announced following the Monetary Policy Committee (MPC) meeting held between April 7 and 9, 2025.

• NPCI can now decide the UPI limit for person-to-merchant (P2M) transactions.
• The current limit is ₹2 lakh, but it may be revised soon based on sectoral needs.
• Person-to-person (P2P) UPI transaction limit will remain unchanged at ₹1 lakh.

• RBI has reduced the repo rate by 25 basis points (0.25%), from 6.25% to 6%.
• This move is expected to lower interest rates on loans like home loans, auto loans, and more.

• GDP Growth Projection: 6.5%
• Retail Inflation (CPI) Forecast: Around 4%
• RBI Governor Sanjay Malhotra emphasized that the focus will be on balancing growth with inflation control.

• Merchants could soon accept higher-value UPI payments, boosting convenience for large purchases.
• Consumers may benefit from cheaper loans due to the repo rate cut.
• The shift also shows RBI’s confidence in NPCI’s ability to manage the fast-evolving digital payment space.