What workflows should accounting package add so capital market investments UPI payments auto-split when they exceed the per-transaction cap?

If your POS system accepts UPI payments for term deposit openings, you’ll need to tweak both your settlement and ledger rules to handle the new high-value UPI limits properly. Since September 15, 2025, the NPCI lets verified categories like term deposits go up to ₹10 lakh per day — but that also means your system has to treat these transactions differently from normal retail payments.
First, update your settlement rules. Tag every UPI transaction meant for term deposits with the correct NPCI purpose code INVS_TD. This ensures they aren’t mixed with normal sales payments. Route them through a separate investment or deposit settlement batch rather than the standard POS batch, because banks may process these through different merchant codes and timings. Large-value UPI payments (above ₹2 lakh) often settle on a T+1 basis, so your settlement logic must support delayed posting. Also, only allow routing through verified PSP handles that actually support high-value UPI; not every PSP does. Finally, your reconciliation flow should match each incoming UPI receipt against a term deposit creation request so that the finance team never sees unlinked receipts in their end-of-day reports.
Next, update your ledger mapping. In normal retail flows, a UPI receipt credits sales revenue but for term deposits, that’s incorrect. Instead, when a customer opens a term deposit via UPI, the entry should debit the bank (UPI receipts) and credit a Term Deposit Liability account. Once the term deposit is actually created or confirmed in the core banking system, that liability should move to the Term Deposit Principal account. If a refund happens before creation, you’d reverse it by debiting the liability and crediting Bank UPI Refunds Payable.
You’ll also want to add some extra controls in your posting logic. Always store the NPCI purpose code (INVS_TD) in your transaction records so audits can identify investment-linked UPI flows. Maintain a link between the UPI Reference ID and the Term Deposit ID to make reconciliation painless. Set up a daily aggregate view to make sure the total UPI receipts tagged as INVS_TD don’t exceed ₹10 lakh per merchant per day. And log PSP handle details and payer VPAs to meet compliance requirements.
Before settlement posting, the POS should also verify a few things: that the PSP handle supports high-value UPI, the transaction status is successful, the settlement window hasn’t expired, and the total daily inflows for that category are still within limit. If any of these checks fail, the transaction should be flagged for manual review instead of getting auto-posted.

So, after the September 2025 UPI rule change, credit card bill payments can have higher daily caps but still have a per-transaction cap meaning a single large bill might need to be split into multiple UPI transactions. If your reconciliation software doesn’t support this auto-split workflow, your downstream ledgers and settlement files are going to look messy real fast.

Here’s how you should design those workflows:

• Add a pre-reconciliation validation layer:

When your system ingests transaction data, it should check whether any single bill payment exceeds the UPI per-transaction cap (say ₹2 lakh). If yes, automatically flag it as a split-required transaction and queue it for sub-transaction generation.

• Auto-split logic with parent-child mapping:

The software should create multiple child transactions, each within the cap (e.g., a ₹4 lakh bill splits into two ₹2 lakh UPI transactions). Each child transaction should carry the same parent ID and reference the same payer details for unified tracking.

• Assign sequence and settlement references:

Add a split sequence number and link all parts under a single Parent Settlement ID. This helps during reconciliation when settlement confirmations come back separately from the PSP or bank.

• Update reconciliation matching rules:

During matching, your software needs to sum all child transactions belonging to a parent and match the combined total against the source invoice or card bill. That way, you don’t show false partial match errors in reports.

• Add audit tagging for split payments:

Every child transaction should retain the same purpose code (P1003 for credit card bills) but should also include a split index field (1/2, 2/2, etc.) for audit and traceability.

• Handle reversals cleanly:

If one of the split payments fails or reverses, your reconciliation system should automatically flag the parent as partially settled and initiate retry workflows only for the failed portion not the entire amount.

• Integrate user and finance alerts:

Build alerts like Bill partially settled ₹2 lakh pending due to per-transaction cap so finance teams know whether to trigger retries or alternative payment routes like NEFT.

Make your invoicing tool smart enough to notice when someone’s trying to pay more than the UPI limit, quietly break it into smaller transactions, and handle them one by one in the background. Then stitch it all together so your books still show a single payment. It’s mostly about saving the customer from Payment Failed – Limit Exceeded errors and your finance team from reconciliation nightmares.

Start by connecting your payment layer (whatever orchestrates UPI requests, Pine Labs, Razorpay, Cashfree, etc.) to an NPCI or PSP metadata API. These APIs can tell you whether a payer–merchant combo is eligible for the updated cap (like ₹5L or ₹10L for specific categories such as credit card bills). The moment a customer enters their UPI ID or selects a bank handle, run a quick check:

If category = Credit Card Bill Payment and payer_verified = true → mark as eligible for higher UPI limits.

Once that check passes, show a short informational banner or tooltip right in the payment screen — something like:

Good news! Your UPI handle supports the new higher limit for credit card bill payments (up to ₹10L/day).

You can make it dynamic, too, if a user’s UPI handle doesn’t qualify, show:

This UPI ID supports payments up to ₹1L. For higher payments, please try NetBanking or another UPI ID linked to your verified account.

If you’re processing split transactions (because a user tried to pay more than the per-transaction cap), display a short confirmation like:

Your payment will be auto-split into two UPI requests to stay within NPCI’s per-transaction limit.

On the backend, store the eligibility status and any NPCI or PSP response codes in your transaction logs. That helps support teams explain payment outcomes later and it’s gold for debugging edge cases during rollout.

First, start by mapping your merchant categories (MCCs) or business use cases to the NPCI’s standardized UPI purpose codes. For credit card bill payments, the typical purpose code is something like CCP (Credit Card Payment) or whatever your PSP/bank mandates under NPCI’s Credit Card Repayments category. Your PSP should provide an updated list after the September 2025 changes.

Then, when your marketplace platform generates a UPI collect or intent request (like through Razorpay, Paytm, or Pine Labs APIs), inject the purposeCode field directly into the payload — for example:

{

txnId: TXN12345,

amount: 50000,

payerVPA: user@upi,

payeeVPA: creditcard@bank,

purposeCode: CCP,

note: Credit Card Bill Payment

}

This makes the transaction self-identifying during audits, so both your system and the PSP know it’s a credit card bill payment and not a generic transfer.

On the backend, make sure the ledger and reconciliation modules also carry this code. When you export daily reports or settlement files, include the purpose code in a dedicated column (e.g., UPI Purpose Code) so finance and compliance can filter these transactions instantly.

You can even go one step further: set up a rule in your payments orchestration layer — if the payee VPA belongs to a recognized credit card issuer (like @hdfcbank, @icicibank, etc.), automatically tag it with the CCP purpose code. That reduces manual tagging errors and ensures every bill payment gets the right classification, even when customers use third-party apps to initiate UPI payments