UPI Transaction Limits Doubled: NPCI Announces New Rules From September 15

The National Payments Corporation of India (NPCI) has announced a significant revision in the transaction value limits for the Unified Payments Interface (UPI), India’s most popular digital payments platform. Effective September 15, 2025, users will be able to make larger payments across multiple categories, making UPI even more versatile for peer-to-peer (P2P) as well as peer-to-merchant (P2M) transactions.

The new limits will cover a wide range of use cases, including government e-marketplace purchases, travel and tourism, insurance payments, credit card repayments, business transactions, retail foreign exchange payments, and digital account openings.

New UPI Transaction Limits From September 15

In an official post on X (formerly Twitter), National Payments Corporation of India (NPCI) confirmed that the category-wise revised limits will come into force from mid-September. NPCI, a non-profit organisation jointly owned by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), said the new rules aim to strengthen financial inclusion and provide users with greater flexibility in making high-value digital transactions.

Key Highlights of Revised UPI Limits:

• Capital market investments, insurance, government e-marketplace, collections, and travel payments:

  • Up to ₹5,00,000 per transaction

  • Up to ₹10,00,000 per day

• Credit card repayments:

  • ₹5,00,000 per transaction

  • ₹6,00,000 per day

• Jewellery purchases:

  • ₹2,00,000 per transaction

  • ₹6,00,000 per day

• Business and merchant transactions:

  • ₹5,00,000 per transaction

• Foreign exchange retail payments (via BBPS):

  • ₹5,00,000 per transaction

  • ₹5,00,000 per day

• Digital account opening:

  • ₹5,00,000 per transaction

  • ₹5,00,000 per day

• Initial digital account funding:

  • ₹2,00,000 per transaction

UPI’s Growing Role in India’s Digital Economy

UPI has already become the backbone of India’s digital payments ecosystem, processing billions of transactions each month. With these enhanced limits, UPI is set to capture an even larger share of high-value transactions in sectors like insurance, credit card repayments, and online business payments.

This move is expected to benefit both retail customers and businesses, particularly small merchants who are increasingly adopting UPI for seamless and low-cost transactions.

NPCI–PayPal Collaboration for Cross-Border Payments

In a related development, NPCI’s international arm recently announced a strategic partnership with PayPal to build a cross-border payments platform. This initiative will allow Indian consumers to:

• Make international purchases from global merchants directly via UPI.

• Enable peer-to-peer (P2P) international money transfers.

• Use an AI-powered autonomous purchase agent for automated online buying.

This collaboration is aimed at strengthening India’s global digital payment footprint, aligning with the government’s vision of making UPI a preferred platform worldwide.

Conclusion

The revised UPI transaction limits effective September 15, 2025, mark a significant step forward in India’s digital payments evolution. By enabling larger transactions across multiple sectors — from insurance to jewellery to cross-border retail — NPCI is ensuring that UPI is no longer limited to small-value convenience transfers but is also robust enough for high-value, high-impact payments.

Coupled with its international expansion through PayPal and other global partnerships, UPI is rapidly positioning India as a leader in financial innovation. For consumers, businesses, and financial institutions, this move underscores UPI’s transition into a truly universal payment solution.