As per April 2025, Reserve Bank of India (RBI) allows flexibility in UPI transaction limits for in-person merchant payments, ranging from ₹2 lakh to _____. .​

Correct option is C

The correct answer is (C) ₹5 lakh.

Explanation:

• As of April 2025, the Reserve Bank of India (RBI) has granted flexibility in UPI transaction limits for in-person merchant payments, allowing a range from ₹2 lakh to ₹5 lakh.
• Previously, UPI transactions were capped at ₹1 lakh for both person-to-person (P2P) and person-to-merchant (P2M) payments.
• This new flexibility is aimed at facilitating high-value transactions, particularly in sectors such as healthcare, education, and tourism.
• Banks are allowed to set their own limits within the framework set by the National Payments Corporation of India (NPCI), ensuring proper risk management.

Information Booster:

• The RBI's move aims to enhance the adoption of digital payments and facilitate smoother high-value transactions.
• While P2P transaction limits remain capped at ₹1 lakh, P2M payments benefit from the increased flexibility.
• This policy is part of India's push to support a cashless economy and improve digital payment infrastructure.
• Merchants and consumers need to check with their respective banks for specific limits applicable to their transactions.
• The decision is expected to drive further growth in digital payment adoption across various sectors.