Starting September 15, 2025, India’s Unified Payments Interface (UPI) will allow significantly higher payments for select merchants in high-value sectors. The National Payments Corporation of India (NPCI) has revised transaction limits, particularly for payments in insurance, investments, travel, and credit card bills. This move aims to streamline high-value digital payments, enhance convenience, and accelerate digital adoption among consumers and businesses.
The key changes focus on Person-to-Merchant (P2M) transactions. Verified merchants in specified categories will now allow:
Per transaction limit: Up to ₹5 lakh
Daily cap: Up to ₹10 lakh
Fintech experts have welcomed this decision. Akash Sinha, CEO & Co-founder of Cashfree Payments, said, “Raising UPI limits to ₹5 lakh per transaction and ₹10 lakh per day is a timely move that addresses real challenges for businesses handling high-value payments.”
Previous limit: ₹2 lakh per transaction
New limit: ₹5 lakh per transaction
Daily cap: ₹10 lakh
For payments like earnest money deposits and taxes:
Previous limit: ₹1 lakh per transaction
New limit: ₹5 lakh per transaction
Previous per transaction limit: ₹1 lakh
New limit: ₹5 lakh
Daily cap: ₹10 lakh
Limits for credit card and loan payments have also been relaxed, making digital payments more efficient for large sums.
Previous per transaction limit: ₹1 lakh
New limit: ₹2 lakh
Daily cap: ₹6 lakh
No change: Daily limit remains ₹1 lakh
Previously, paying large amounts often required splitting transactions or using traditional methods like cheques and bank transfers. The new limits allow instant high-value payments, reducing delays and hassle.
By enabling large transactions digitally, the changes encourage more users and businesses to adopt UPI for high-value payments, including insurance, investments, and travel.
Merchants in high-value sectors can expect:
Fewer failed or incomplete transactions
Reduced drop-offs at checkout
Improved customer satisfaction due to seamless payment experience
Higher limits apply only to verified merchants in specified categories.
Not all merchants will automatically qualify.
Multi-factor authentication for large transactions
Monitoring for suspicious activity
Strict merchant verification to mitigate risks
Users do not need to enable the higher limit manually.
Once a merchant is verified, the new limit applies automatically.
Some users may hesitate to transact very large sums digitally due to fraud fears or security concerns.
Only verified merchants can offer higher limits, meaning traditional limits may still apply in many cases.
Banks, payment apps, and UPI-interface devices must support the new limits smoothly to prevent transaction failures.
Conclusion
NPCI’s decision to raise UPI transaction limits is a significant step toward making high-value digital payments easier and safer in India. Individuals regularly paying for insurance, travel, investments, or credit card bills will benefit from faster, simpler transactions. This change highlights the maturing digital payments infrastructure, making it capable of handling both small and large transactions efficiently.