Investing via UPA: SEBI has proposed to increase the limit of transactions through UPI for capital market transactions to Rs 5 lakh. SEBI believes that this change will make the transaction process more smooth.
SEBI: If you invest through UPI then there is good news for you. Market regulator Securities and Exchange Board of India (SEBI) has decided to increase the limit of transactions through UPI for capital market transactions. Now this limit will be increased from Rs 2 lakh to Rs 5 lakh.
However, this change is currently part of SEBI’s consultation paper and will be further evaluated in collaboration with NPCI. SEBI has cited the growing needs of investors and safe and efficient means of digital payment as the reason behind this change.
SEBI studied the transactions
Before taking this decision, SEBI studied the transactions of the clients of top brokers. This study found that 92.9% of the transactions are less than ₹ 1 lakh. At the same time, transactions between Rs 1 lakh and Rs 2 lakh are 3.9%. Apart from this, transactions between Rs 2 lakh and Rs 3 lakh are 1.3%.
On this basis, SEBI has proposed to set a limit of up to Rs 5 lakh. SEBI believes that this change will make the transaction process more smooth.
New changes can be implemented easily
This consultation paper of SEBI also stated that NPCI (National Payments Corporation of India) continuously issues new UPI handles and their system is designed in such a way that they can easily adjust to the new changes.
Apart from this, NPCI had issued a circular on January 9, stating that from February 1, 2025, all transaction IDs should not contain special characters.
