UPI Transaction Limits Increased: Insurance, Ticket Booking, Loan EMIs and Jewelry Payments Get Easier from September 15

Digital payment users in India have a reason to celebrate. The National Payments Corporation of India (NPCI) has officially announced an increase in UPI (Unified Payments Interface) transaction limits, effective September 15, 2025. The move will particularly benefit individuals making high-value payments such as insurance premiums, loan EMIs, stock market investments, government fees, large travel bookings, and jewelry purchases.

What’s Changing?

Earlier, UPI was mostly considered a convenient method for small-value transactions. But with its growing adoption across industries, the need for higher limits became evident. The revised limits now allow users to make larger transactions without splitting payments into multiple parts, thereby making the process faster and more efficient.

Here is a breakdown of the new transaction limits across categories:

• Capital Market & Insurance Payments: Limit increased from ₹2 lakh to ₹5 lakh per transaction. Daily cap: ₹10 lakh.

• Government e-Marketplace & Tax Payments: Transactions up to ₹5 lakh are now allowed (earlier ₹1 lakh).

• Travel Bookings: Ticket purchases raised from ₹1 lakh to ₹5 lakh per transaction. Daily cap: ₹10 lakh.

• Credit Card Bill Payments: Single transaction limit increased to ₹5 lakh, with a daily cap of ₹6 lakh.

• Loan & EMI Collections: Now possible up to ₹5 lakh per transaction and ₹10 lakh daily.

• Jewelry Shopping: Transaction cap raised from ₹1 lakh to ₹2 lakh, with a daily cap of ₹6 lakh.

• Banking Services (Term Deposits – Digital Onboarding): Limit increased from ₹2 lakh to ₹5 lakh.

• Foreign Exchange Payments (BBPS): Transaction limit extended to ₹5 lakh, daily cap also ₹5 lakh.

• Digital Account Opening: Limit remains unchanged at ₹2 lakh.

What Hasn’t Changed?

The new rules apply only to Person-to-Merchant (P2M) payments, meaning transactions made to businesses, service providers, or merchants. The Person-to-Person (P2P) transaction limit remains at ₹1 lakh per day.

Why This Matters

The increase in UPI transaction limits is expected to bring significant convenience to both consumers and businesses:

• Insurance & Loan Payments: Users can now pay premiums or EMIs in a single transaction without multiple splits.

• Travel Industry: Booking expensive flights, train journeys, or hotel packages becomes easier.

• Stock Market & Government Fees: Traders and individuals can make high-value payments without worrying about transaction caps.

• Jewelry & Luxury Purchases: Customers can now use UPI for buying high-value items, replacing the need for card or bank transfers.

Industry experts believe the decision will further boost UPI adoption in high-value categories. Aakash Sinha, CEO of Cashfree Payments, welcomed the move, saying:

“Increasing the UPI limit to ₹5 lakh per transaction and ₹10 lakh daily has come at the right time. It allows traders and businesses to process large payments with a single click and receive instant settlement.”

UPI’s Growing Role in India

UPI has already transformed India’s payment ecosystem, handling billions of transactions every month. By raising transaction limits, NPCI is signaling its intent to make UPI not just a tool for daily small payments, but also for big-ticket financial activities. This will put UPI in direct competition with traditional methods like NEFT, RTGS, and credit cards, while offering faster processing and instant confirmations.

Bottom Line

From September 15, 2025, UPI users will enjoy higher limits across insurance, EMIs, ticket bookings, jewelry, and other key sectors. For individuals and businesses alike, this move represents a new era where large payments can be completed as seamlessly as small transactions—all through the convenience of UPI.