SEBI Proposes Increasing UPI Transaction Limit for Capital Market Deals to ₹5 Lakh

The Securities and Exchange Board of India (SEBI) has proposed raising the Unified Payments Interface (UPI) transaction limit for capital market transactions from the current ₹2 lakh to ₹5 lakh per day. This initiative aims to enhance payment flexibility and efficiency for investors engaging in the securities market.

SEBI's analysis revealed that transactions below ₹1 lakh account for 92.9% of total UPI-based capital market transactions, while those between ₹1 lakh and ₹2 lakh constitute 3.9%. Transactions ranging from ₹2 lakh to ₹3 lakh make up 1.3%. Based on these findings, SEBI believes that increasing the UPI transaction limit to ₹5 lakh will accommodate a broader range of investor needs.

The regulator has invited public comments on this proposal until February 21, 2025, before finalizing the decision. This move aligns with SEBI's ongoing efforts to streamline payment processes and foster greater participation in the capital markets.

Image Source: SEBI Revises UPI Payment Limit for Individual Investors in IPOs, etnownews.com