UPI Daily Limit Raised to ₹10 Lakh for Merchant Payments: NPCI Introduces New Rules

UPI Payments Update 2025: The National Payments Corporation of India (NPCI) has announced a major change in the Unified Payments Interface (UPI) ecosystem. Effective September 15, 2025, the daily transaction limit for Person-to-Merchant (P2M) payments has been raised to ₹10 lakh. The move aims to simplify high-value digital transactions in sectors such as insurance, capital markets, travel, and government services.

Notably, the daily limit for Person-to-Person (P2P) payments remains unchanged at ₹1 lakh.

New Transaction Limits for Key Sectors

NPCI’s revised framework increases per-transaction and daily limits across several categories:

• Insurance and Capital Markets: Transaction limit raised from ₹2 lakh to ₹5 lakh; daily cap set at ₹10 lakh.

• Government e-Marketplace (GeM): Limit increased from ₹1 lakh to ₹5 lakh per transaction.

• Travel Bookings: Limit revised from ₹1 lakh to ₹5 lakh per transaction; daily cap at ₹10 lakh.

• Credit Card Bill Payments: New cap set at ₹5 lakh per transaction and ₹6 lakh daily.

• Jewelry Purchases: Raised from ₹1 lakh to ₹2 lakh per transaction, with a daily limit of ₹6 lakh.

Why NPCI Raised the UPI Limits

The decision to enhance UPI limits comes at a time when digital payments are rapidly replacing cash and traditional banking methods for high-value transactions. Previously, customers purchasing insurance policies, making stock market investments, or buying jewelry had to rely on multiple smaller payments or offline methods.

With the new limits, such large transactions can now be completed seamlessly in a single digital payment, boosting efficiency and customer convenience.

Industry Experts Welcome the Move

Fintech leaders have lauded NPCI’s decision as a timely and strategic step.

• Aakash Sinha, CEO of Cashfree Payments, said the increased limits would significantly help businesses that handle large-value transactions, allowing customers to avoid repetitive payments.

• Akshay Mehrotra, Co-founder of Fibe, noted that the change enhances UPI’s flexibility and usability, further solidifying its role as a cornerstone of India’s digital economy.

Stronger Security Measures in Place

Alongside the increased limits, NPCI has introduced multi-factor authentication and additional verification processes to minimize fraud risks associated with high-value transactions. This ensures that while customers enjoy greater flexibility, their digital payments remain secure.

Final Take

UPI has already revolutionized India’s digital payments ecosystem by making transactions fast, free, and universally accessible. With the new ₹10 lakh P2M daily cap, UPI is set to become an even more powerful tool for both consumers and businesses.

By enabling large-scale digital transactions across insurance, markets, travel, and retail, this move not only boosts customer convenience but also strengthens the backbone of India’s cashless economy.