UPI Steps Up for Big Payments and Business Growth
- NPCI raises per transaction limit to Rs 5 lakh for select categories from 15 September 2025.
- Users can transact up to Rs 10 lakh daily in categories like insurance, capital markets, travel, and GeM.
- Regular person-to-person UPI transfers retain the Rs 1 lakh daily limit, ensuring security.
The National Payments Corporation of India (NPCI) has announced significant changes to UPI transaction limits, which will come into effect on Monday, 15th September 2025. The new limits are designed to benefit not only everyday users but also businesses and merchants who rely heavily on UPI for payments.
Under the updated rules, specific categories such as insurance premiums, capital markets, and credit card bill payments will see their per transaction limit increased to Rs 5 lakh. Additionally, users in these categories will be able to make transactions up to Rs 10 lakh within a 24-hour period. This increase is expected to provide greater convenience for high-value payments and streamline financial activities for both individuals and businesses.
Daily transaction limits have also been raised for twelve other categories, giving users more flexibility in managing larger payments. However, for regular person-to-person UPI transfers, the daily limit remains unchanged at Rs 1 lakh, ensuring that routine payments remain secure and manageable.
For key sectors such as capital markets, insurance, government e-marketplace (GeM), and travel, the per transaction limit is Rs 5 lakh, with a daily cap of Rs 10 lakh. Credit card payments and jewellery purchases also have a per transaction limit of Rs 5 lakh, with a slightly lower daily limit of Rs 6 lakh. Business and merchant payments will have a per transaction limit of Rs 5 lakh, with no specific daily cap, allowing for greater flexibility in managing large transactions. Digital account opening transactions have both per transaction and daily limits set at Rs 5 lakh.
The NPCI clarified that these changes are specific to institutional transactions such as tax payments, government-related payments, travel, and business dealings. General UPI transactions for P2P transfers will continue with the existing daily limit of Rs 1 lakh, balancing convenience with security.
The revised limits highlight the growing adoption and importance of UPI in India. Originally designed for small, everyday payments, UPI has become a preferred platform for a variety of high-value financial transactions, reflecting its expanding role in the country’s digital payment ecosystem. With these new limits, both individuals and businesses can expect smoother, faster, and more efficient transactions, further strengthening UPI’s position as a reliable and versatile payment system.
This step by NPCI is likely to enhance user confidence in digital payments and encourage wider use of UPI for more significant financial transactions across India.
