The umbrella organization that handles UPI payments, the National Payments Corporation of India (NPCI), recently released a circular announcing an increase in the transaction limit for particular UPI categories. With effect from September 15, 2025, the UPI transaction limits for a few payment categories have been increased to Rs 5 lakh and Rs 10 lakh.
Key Highlights
- From September 15, NPCI raises UPI caps to ₹5 lakh per transaction, ₹10 lakh daily in select categories.
- Categories like insurance, capital markets, credit card bills, travel and GeM now benefit hugely from higher limits.
The NPCI has stated that Members, Apps, and PSPs must comply with the same by September 15, 2025. On August 24, 2024, the NPCI increased the per transaction limits for entities under Tax Payments categories to 5 lakh. "With UPI emerging as a preferred payment method, the market has demanded that higher per transaction limits be extended to additional categories of UPI transactions.
According to the NPCI, the per transaction limits for the aforementioned categories have been increased accordingly, along with additional guidelines.
The increased limits will apply to merchants who are classified as 'Verified Merchant'. Acquiring member banks are required to ensure that such limits are provided to merchants who follow the NPCI UPI guidelines.
UPI Transaction Limits From 15 September – Full List of Categories
- Capital Market – ₹5 Lakh (standard), ₹10 Lakh (enhanced)
- Insurance – ₹5 Lakh (standard), ₹10 Lakh (enhanced)
- Government e-Marketplace (EMD Payments) – ₹5 Lakh (standard), ₹10 Lakh (enhanced)
- Travel Bookings – ₹5 Lakh (standard), ₹10 Lakh (enhanced)
- Credit Card Bill Payments – ₹5 Lakh (standard), ₹6 Lakh (enhanced)
- Collections – ₹5 Lakh (standard), ₹10 Lakh (enhanced)
- Business/Merchant Transactions (Including Pre-Approved Payments) – ₹5 Lakh (standard), NA for enhanced
- Jewellery Purchases – ₹2 Lakh (standard), ₹6 Lakh (enhanced)
- FX Retail via BBPS Platform – ₹5 Lakh (standard), ₹5 Lakh (enhanced)
- Digital Account Opening – Term Deposits – ₹5 Lakh (standard), ₹5 Lakh (enhanced)
- Digital Account Opening – Initial Funding – ₹2 Lakh (standard), ₹2 Lakh (enhanced)
- Other Approved High-Value Categories – Up to ₹10 Lakh depending on RBI/UPI guidelines.
Member banks may continue to be given the discretion to set internal limits based on their internal policies, subject to the overall ceilings prescribed by the NPCI. The P2P transaction limit will remain unchanged in accordance with existing guidelines.
Also Read: UPI Update: Users Can Make Digital Payments in 192 Countries
NPCI has also announced an increase in the limit for Person-to-Merchant (P2M) transactions from Rs 5 lakh to Rs 10 lakh. The new Person-to-Merchant transaction limit becomes effective on September 15, 2025.
After the revision, UPI customers will be able to make P2M transactions of up to Rs 10 lakh in a single day for specific verified merchant categories beginning September 15. However, the limit for Person-to-Person (P2P) transfers will remain the same, at Rs 1 lakh per day.
