UPI: Big update related to UPI has arrived! Transaction limit has been increased...but this feature will be discontinued..

A big step has been taken towards strengthening digital payments in India. The National Payments Corporation of India (NPCI) has announced that now up to ₹ 10 lakh can be paid daily through UPI. This new facility will currently be applicable to select categories such as insurance, capital market, government e-marketplace, travel booking, and loan repayment.

While till now the limit of one transaction for the capital market and insurance was ₹ 2 lakh, now it has been increased to ₹ 5 lakh. The daily limit has also been increased to ₹ 10 lakh. This will benefit those investors and customers who have to transfer large amounts at once.

Credit card and jewelry payment

This change will also affect credit card users. Earlier, the limit for credit card bill payment was ₹ 2 lakh in one transaction; now it has been increased to ₹ 5 lakh. The maximum daily limit has also been increased from ₹ 5 lakh to ₹ 6 lakh.

There is also relief news for those who buy jewelry. Here, the limit of one transaction is still ₹ 2 lakh, but the daily limit has been increased to ₹ 6 lakh.

The limit for hospital and education payments has already been set at ₹ 10 lakh, which is still intact. A daily limit of ₹ 10 lakh is also fixed for those investing in government bonds and the RBI direct platform.

Emphasis on security, too

While on one hand, NPCI has increased the limit, on the other hand, security has also been kept in mind. From October 1, 2025, the P2P (Person to Person) "Collect Request" feature will be discontinued. Now, no person will be able to ask for money by sending a request on UPI. Payment can be made only by scanning the QR code or by entering the UPI ID. This step has been taken so that fraudsters cannot collect money from people in the name of cashback or rewards.

Banks will decide their own limit.

Although NPCI has fixed the maximum limit, every bank can keep a lower limit as per its risk assessment.

Less fraud, easier business payments

Industry experts believe that this change will make business payments easier. Large payments can now be made directly through UPI instead of cheques or slow banking channels.

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