NPCI Raises UPI Limits for High-Value Transactions from September 15, 2025
In a move aimed at expanding the utility of UPI for large transactions, the National Payments Corporation of India (NPCI) has significantly increased the transaction limits for several select merchant categories. These changes, effective September 15, 2025, are intended to ease the process for consumers making high-value payments and reduce reliance on traditional bank transfers or cheques.
What’s New: Limit Changes
Per-transaction limits in eligible merchant categories have been raised to ₹5 lakh from the earlier lower limits (often ₹2 lakh or ₹1 lakh depending on the category).
The daily aggregate (24-hour) limit for many of these categories has also been raised to ₹10 lakh.
Categories Covered
The higher limits will apply to verified merchants in the following sectors:
- Capital markets (mutual funds, stock market investments)
- Insurance payments — premiums etc.
- Government e-Marketplace payments (e.g. earnest money deposits, some tax payments)
- Travel
- Credit card bill payments
- Collections (EMIs, loan repayments etc.)
- Business / Merchant (including pre-approved payments)
- Jewellery (with a slightly lower per-transaction limit)
- FX Retail via BBPS platform
- Digital account opening for term deposits
- Digital account initial funding
Specifics of Limits by Category
Here are a few illustrative examples of what changed:
| Category | New Per-Transaction Limit | New Daily Aggregate Limit |
|---|---|---|
| Capital Markets, Insurance, Travel, Govt e-Marketplace, Collections | ₹5 lakh | ₹10 lakh |
| Credit Card Bill Payments | ₹5 lakh | ₹6 lakh |
| Jewellery | ₹2 lakh | ₹6 lakh |
| Digital Account Opening / Term Deposit | ₹5 lakh | ₹5 lakh |
| Digital Account Opening – Initial Funding | ₹2 lakh | ₹2 lakh |
What Hasn’t Changed
Person-to-Person (P2P) UPI transfers retain the existing limit of ₹1 lakh per day.
Only “verified merchants” in the specified categories are eligible for the increased limits. If a merchant isn’t classified/verified under these categories, the old limits apply.
Banks / payment apps (PSPs) may still impose lower internal limits depending on their internal risk policies, even though the NPCI has raised the ceiling.
Why It Matters
Simpler high-value payments: For many users, large investments (in mutual funds or equities), insurance premium payments, or travel bookings were difficult via UPI due to earlier caps. With the higher limits, there’s less need to split transactions or use slower methods.
Better user experience: The new policy reduces friction for digital payments in sectors that often involve large sums.
Boost to digital payments ecosystem: It underscores NPCI’s confidence in scaling UPI’s usage beyond small transactions and everyday use, into higher-value financial flows.
Considerations and Risks
Higher limits may bring increased risk of fraud or misuse, especially in merchant verification and transaction monitoring. Robust checks and verification will be essential.
Users must check whether the merchant they are dealing with is verified under the relevant category before depending on the higher limit.
PSPs or banks may impose their own restrictions or ceilings lower than the NPCI maximum, so some users might still face constraints.
Conclusion
NPCI’s decision to raise UPI transaction limits to ₹5 lakh per transaction and ₹10 lakh per day for several high-value categories from September 15, 2025, represents a significant upgrade in India’s digital payments infrastructure. It simplifies large payments for investments, insurance, travel, and other sectors and signals a push toward digital empowerment. While challenges remain, especially in implementation and risk management, the change is a strong step toward mainstreaming high-value digital transactions.
