UPI MDR: Clarification on Splitting Rs 6,000 into Three Payments of Rs 2,000 without Daily Cap

The National Payments Corporation of India (NPCI) recently released a framework along with a set of Frequently Asked Questions (FAQs) that clarifies the handling of payment transactions. Notably, the framework does not mandate that multiple payments associated with a single bill be aggregated. This means that businesses have the flexibility to process larger payments in smaller denominations, allowing them to break down a single transaction into multiple payments of Rs 2,000 or less.

This provision is particularly significant for businesses engaged in transactions where payment thresholds are relevant, as it enables them to navigate payment limits without contravening established regulations. The NPCI’s guidelines aim to enhance payment efficiency and support the digital transaction ecosystem in India, thus fostering greater financial inclusion and flexibility for both consumers and businesses.