NPCI introduces new UPI transaction limits and security features

The National Payments Corporation of India (NPCI) has introduced new security features and transaction regulations for the Unified Payments Interface (UPI) aimed at 2026. While person-to-person transfer limits remain unchanged, new ceilings have been established for specific merchant categories. For transactions involving insurance, capital markets, travel, collections, and the Government e-Marketplace, the NPCI has permitted transaction ceilings of up to ₹5 lakh, with a total daily limit of ₹10 lakh, depending on the category and individual bank limits.

Parallel to these security updates, the Indian government has moved to amend the legal framework governing UPI charges through the Taxation and Other Laws (Amendment) Bill, 2026. This legislation creates a framework that may allow banks and payment participants to levy charges, such as a Merchant Discount Rate (MDR), on certain specified transactions in the future. The Finance Ministry has indicated that any future charges would be targeted and nominal, specifically intended to cover the operational costs of cybersecurity, fraud prevention, and infrastructure, rather than imposing a blanket fee on consumers or small merchants.