Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q7: Scenario: Mr. Sharma is discharged from a hospital in Mumbai on February 10, 2026. His final bill is ₹4,20,000. He attempts to pay the full amount via a single UPI transaction to the hospital's verified merchant QR code. Based on current regulations, will this transaction succeed?

A
No, because the maximum limit for any UPI transaction is ₹1 Lakh.
B
No, because the limit for hospitals is capped at ₹2 Lakh.
C
Yes, provided his bank and the app support the enhanced ₹5 Lakh limit for the "Hospital" merchant category.
D
Yes, but he must split the payment into five transactions of ₹84,000 each.
✅ Correct Answer: C
Concept: Application of Enhanced Limits (Category Code 5 Lakh). Rule: As of Dec 2023 (and in force in 2026), the RBI raised the UPI transaction limit to ₹5 Lakh specifically for payments to Hospitals and Educational Institutions.
Condition: The merchant (Hospital) must be classified under the correct Merchant Category Code (MCC). If the merchant is "verified" under this category, a single transaction of ₹4.2 Lakh is permissible.
Contrast: If this were a payment to a jewelry store (standard merchant), it would fail (limit ₹1 Lakh).