The Unified Payments Interface (UPI), India’s most popular digital payments platform, has introduced revised transaction limits from September 15, 2025, the National Payments Corporation of India (NPCI) announced on Sunday. The move is aimed at simplifying high-value digital payments across key sectors such as capital markets, insurance, travel, and government transactions.
Higher Transaction Limits Introduced
According to the new guidelines, UPI per-transaction limits have been increased to ₹10 lakh and ₹5 lakh across selected categories. Only verified merchants will be eligible for these enhanced limits, and acquiring banks have been directed to ensure compliance with the updated framework.
Updated UPI Transaction Caps by Category
- Capital Market – up to ₹10 lakh
- Insurance – up to ₹10 lakh
- Government e-Marketplace (EMD Payments) – up to ₹10 lakh
- Travel Bookings – up to ₹10 lakh
- Credit Card Bill Payments – up to ₹6 lakh
- Collections – up to ₹10 lakh
- Business/Merchant Transactions (including pre-approved payments) – up to ₹5 lakh
- Jewellery – up to ₹6 lakh (raised from ₹2 lakh)
- FX Retail via BBPS – up to ₹5 lakh
- Digital Account Opening for Term Deposits – up to ₹5 lakh
- Digital Account Opening (Initial Funding) – up to ₹2 lakh
Merchant Payments Now Up to ₹10 Lakh
One of the key updates is the doubling of Person-to-Merchant (P2M) transaction limits, allowing customers to make payments of up to ₹10 lakh per transaction for purchases and services. The Person-to-Person (P2P) transfer cap remains unchanged at ₹1 lakh per day, ensuring consistency in peer-to-peer transfers.
Banks Retain Flexibility
While NPCI has set the upper ceiling, individual banks retain the discretion to define their own internal limits to maintain customer safety and risk controls for high-value digital payments.
Why It Matters
The enhanced limits are expected to:
- Streamline high-value payments in travel, insurance, and investments.
- Encourage greater merchant adoption of UPI for large-ticket transactions.
- Provide customers with added convenience by reducing dependence on traditional net banking or card-based transactions.
With these revisions, UPI further cements its role as the backbone of India’s digital economy, offering secure, faster, and more seamless transactions for both individuals and businesses.
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