India raises UPI payment limits to Rs 10 lakh daily
The National Payments Corporation of India (NPCI) has announced a significant increase in the Unified Payments Interface (UPI) transaction limits for Person-to-Merchant (P2M) payments, effective from September 15, 2025. With this new regulation, users can now make payments through UPI up to Rs 10 lakh in a single day for specific verified merchant categories. This move is aimed at enhancing the convenience and utility of UPI for high-value payments while maintaining robust security measures. Notably, the daily cap for Person-to-Person (P2P) transactions remains unchanged at Rs 1 lakh per day.
The revised limits particularly benefit sectors where transaction amounts tend to be higher, such as capital markets, insurance, government e-marketplace (GEM portal), travel, credit card bill payments, loan and EMI collections, and jewellery purchases. For example, capital market and insurance payments now allow a maximum of Rs 5 lakh per transaction, with a cumulative daily limit of Rs 10 lakh. Similarly, the travel sector and government e-marketplace transactions have seen their per transaction limits increased from Rs 1 lakh to Rs 5 lakh, both capped with a daily ceiling of Rs 10 lakh. Credit card bill payments via UPI can be made up to Rs 5 lakh in a single transaction, with a daily limit of Rs 6 lakh. For loan repayments and EMI collections, the per transaction limit has also gone up to Rs 5 lakh, with a 24-hour aggregate cap at Rs 10 lakh. Jewellery purchase limits have doubled from Rs 1 lakh to Rs 2 lakh per transaction, with a daily aggregate limit of Rs 6 lakh.
This enhancement resolves a common pain point where users had to split high-value payments into multiple smaller transactions or use traditional banking methods like cheques or wire transfers, both of which are less convenient and slower. By enabling higher single-transaction limits and increased daily caps, the NPCI aims to facilitate smoother, faster digital payments in sectors that deal with high-value transactions. This change is expected to promote greater adoption of UPI for various important payments and investments, making the digital payments ecosystem more inclusive and efficient.
The NPCI’s move has been welcomed by fintech experts and industry leaders who highlight that raising these limits will unlock significant consumer value and ease operational bottlenecks in payments for insurance, investments, education, travel, and other key sectors. Businesses and institutions will benefit from the ability to process larger transactions instantly without the friction of splitting payments. This also enables end users to enjoy faster rollouts and improved digital experiences for high-value payments.
However, it is important to note that these increased limits apply only to P2M payments involving verified merchants in specific categories as defined by NPCI. Banks and payment service providers can set their own internal risk-based caps below these maximum limits if needed. The UPI ecosystem continues to maintain security protocols including merchant verification and transaction monitoring to protect users from fraud while supporting a broader range of digital payments.
Overall, the raise in UPI daily transaction limits to Rs 10 lakh for selected categories marks a major milestone in India’s digital payments journey, reflecting the growing maturity of the UPI platform and its critical role in driving financial inclusion, convenience, and transparency in payment systems across the country.
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