The National Payments Corporation of India (NPCI) announceda significant reduction in Unified Payments Interface (UPI) limits for Person-to-Merchant (P2M) transactions, effective September 15.

The move aims to make high-value digital payments easier and more convenient for users while maintaining strong security measures.

Key Highlights

• UPI P2M daily limit raised to ₹10 lakh for verified merchants. 
• Per-transaction cap boosted to ₹5 lakh in categories like insurance, capital markets.

The new rules allow users to make P2M transactions of up to Rs 10 lakh in a single day for specific verified merchant categories. However, the limit for person-to-person (P2P) transfers remains at Rs 1 lakh per day.

The changes are expected to benefit industries where customers frequently face restrictions on large transactions, forcing them to split payments or use traditional methods like cheques and bank transfers.

The per-transaction limit for investments in capital markets and insurance has been increased from Rs 2 lakh to Rs 5 lakh, with a daily maximum of Rs 10 lakh.

The limit on the Government e-Marketplace (GeM portal), which includes tax payments and earnest money deposits, has been increased from Rs 1 lakh to Rs 5 lakh per transaction.

The travel sector has also seen a significant boost, with the transaction cap increased from Rs 1 lakh to Rs 5 lakh, as well as a daily limit of Rs 10 lakh. Credit card bill payments can now be made for up to Rs 5 lakh per transaction, with a daily limit of Rs 6 lakh.

Also Read: UPI Update: Users Can Make Digital Payments in 192 Countries

The new limit on loan repayments and EMI collections is Rs 5 lakh per transaction and Rs 10 lakh per day. Jewellery purchases will now be allowed for up to Rs 2 lakh in a single transaction, up from the previous limit of Rs 1 lakh, with a daily cap of Rs 6 lakh.

Banking services such as term deposits through digital onboarding have also been improved, with limits increased to Rs 5 lakh per transaction and day, up from Rs 2 lakh previously.

The NPCI stated that these changes will make UPI more useful for high-value payments in critical sectors, encouraging greater adoption of digital transactions in India.