In a significant step toward easing high-value digital payments, the National Payments Corporation of India (NPCI) has raised UPI transaction limits. Effective 15 September 2025, users can now make payments of up to ₹5 lakh per transaction, and up to ₹10 lakh within 24 hours, across several key sectors including investments, insurance, travel, and more.
Higher UPI Limit: What’s New?
Updated Thresholds and Effective Date
NPCI’s new circular mandates that member banks and payment apps must enforce the elevated limits from 15 September 2025. These apply exclusively to Person-to-Merchant (P2M) transactions with verified merchants; P2P (Person-to-Person) limits remain unchanged at ₹1 lakh daily.
Enhanced Limit Details by Category
Here are the key categories now enjoying bumped-up per-transaction and daily UPI caps:
| Category | New Per-Transaction Limit | New 24-Hour Cumulative Limit |
|---|---|---|
| Capital Markets (Investments) | ₹5 lakh | ₹10 lakh |
| Insurance | ₹5 lakh | ₹10 lakh |
| Government e-Marketplace (EMD Payments) | ₹5 lakh | ₹10 lakh |
| Travel | ₹5 lakh | ₹10 lakh |
| Collections (e.g., loan repayments, B2B) | ₹5 lakh | ₹10 lakh |
| Credit Card Payments | ₹5 lakh | ₹6 lakh |
| Jewellery | ₹2 lakh | ₹6 lakh |
| FX-Retail via BBPS | ₹5 lakh | ₹5 lakh |
| Digital Account Opening (Term Deposits) | ₹5 lakh | ₹5 lakh |
| Digital Account Initial Funding | ₹2 lakh | ₹2 lakh |
Purpose & Implementation
Why the Increase?
These changes aim to facilitate higher-value transactions over UPI, reducing dependency on traditional payment methods for large payments in areas such as investments, insurance, tax, and travel. This also aligns with rising user demand for seamless digital infrastructure in such sectors.
Rollout and Oversight
All banks, UPI apps, and Payment Service Providers (PSPs) must adopt these limits by the 15 September deadline. However, NPCI allows individual institutions to enforce stricter internal limits as per their risk or policy frameworks.
What Users Need to Know
- Only P2M Transactions: These higher limits are valid strictly for Person-to-Merchant payments to verified entities. P2P transfers remain capped at ₹1 lakh per day.
- Verification is Key: Merchants must be recognized as “verified” to qualify under the new limits.
- Bank-Level Constraints: Despite the NPCI ceiling, your bank may enforce lower internal caps, so individual limits might vary.
With effect from 15 September 2025, NPCI’s enhanced UPI transaction framework enables smoother high-value digital payments across several sectors. Raising the per-transaction cap to ₹5 lakh and the daily aggregate to ₹10 lakh marks a pivotal shift in India’s digital payment infrastructure, catering to growing user needs without compromising security or system stability.
Tags: UPI transaction limit, NPCI, digital payments, high-value UPI, capital market payments, insurance premiums, UPI daily limit, travel payments, credit card bill UPI, UPI changes 2025
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