Often when we do UPI transactions, we come across some abbreviations like P2P, P2PM, P2M. Let us know in this article what these words mean and where they are used.
What are the categories of UPI transactions?
Friends, online payment has now become a part of our life. We all keep doing some kind of transaction through Google Pay, Phone Pay and Paytm. It can be a payment to the shopkeeper, sending money to a friend or paying electricity or water bill. NPCI has divided these transactions into three different categories to make them easier to understand and manage. These are three categories
- P2M
- P2P
- P2PM
What is a P2M transaction?
P2M is called peer to merchant transaction. This means when the payment takes place between an individual and the shopkeeper. In this transaction, the sender of money is an ordinary person and the receiver of money is a big shopkeeper. When we buy an item and pay for it, it is called a peer-to-merchant transaction.
Those businessmen or shopkeepers whose monthly income through the UPI is more than Rs 50 thousand come in this category.
Such merchants have to pay an interchange fee of 1.1% of the payment amount if they receive payments of more than Rs 2000 from a wallet.
That is, if you transfer more than Rs 2,000 to a shopkeeper’s wallet through PhonePe Wallet or Paytm Wallet, then the shopkeeper will be charged the interchange fees . They have to pay this fee to wallet service providers like PhonePe, Paytm. Note, there is no fee for bank to bank transfer.
However, those shopkeepers who want to avoid interchange fees can promote UPI Lite. There is no fee for making payment through this method. Also there is no need to enter UPI PIN for making payment through this.
Limit for sending money in P2M transaction
Friends, there is no limit on the number of transactions for sending money to the shopkeeper in peer 2 merchant category. You can pay as many times as you want in a day. There is no restrictions.
But there is a limitation of total money transfer to the merchants. This limit is ₹2 lakh/day.
Limit for receiving money in P2M transaction
There is no limit on receiving money in peer 2 merchant transactions. That means if you are a shopkeeper then you can receive as much money as you want from UPI in 24 hours.
What is P2P?
P2P is called Peer to Peer or Person to Person transaction. In this type of transaction, the sender of money is also a common person and the receiver is also a common person.
When we send money through UPI to any of our friends or relatives or someone sends money to us, it comes in the P2P (Peer to Peer) category. We can easily make P2P payments through Google Pay or PhonePe.
Limit for sending money in P2P transactions
Friends, on sending money in peer to peer transactions NPCI has imposed some limits . In such transactions, you can send only ₹1 lakh in a day.
Apart from this, you can do a maximum of 10 transactions in a day. If there are more than 10 transactions, your next transaction will be automatically canceled.
Friends, this limit of UPI payment is applicable on all UPI apps whether it is Google Pay or Phonepe.
Limit for receiving money in P2P transactions
Until some time ago there was no limit on receiving money through peer 2 peer transactions. But now you can only get 4 lakh rupees a day through the UPI. Also, you can receive a maximum of 25 payments in a day through the UPI.
What is P2PM?
P2PM means peer to peer merchant. In this transaction, The sender of the money is a common person while the receiver is a small merchant.
Merchants whose total transaction amount per month is Rs 50,000 or less are called peer merchants. This category has been created to increase UPI transactions among small shopkeepers. The rules of this category are similar to peer 2 peer transactions.
Limit for sending money in P2PM transaction
The rules of P2PM transactions are the same as P2P. That means in this also you can send a total of up to Rs 1 lakh within 24 hours. Apart from this, a total of 10 transactions can be done in 24 hours i.e. money can be sent only 10 times. If you send money more than this, the transaction will be canceled.
Limit for receiving money in P2PM transaction
Now a limit has been imposed on receiving money in P2PM transactions as well. Now you will be able to receive only Rs 4 lakh in total from any UPI app or all UPI apps through P2PM transaction. You can receive this entire amount only through 25 successful transactions.
This means that you will be able to receive money only 25 times in total. Suppose you have received only Rs 2 lakh from 25 transactions in 24 hours, then you will not be able to receive more money.
