UPI Updates Effective September 15: Higher Limits for Select Transactions

The National Payments Corporation of India (NPCI) has announced a significant update to Unified Payments Interface (UPI) transaction rules, effective September 15, 2025. The new framework increases transaction limits for specific categories of high-value Person-to-Merchant (P2M) payments, making it easier for users and merchants to carry out large transactions seamlessly.

While Person-to-Person (P2P) transfers remain capped at ₹1 lakh per day, the revised norms allow select categories to go up to ₹10 lakh in 24 hours, streamlining high-value digital payments across industries.

Key Highlights of the UPI Rule Changes

• New limits effective from September 15, 2025.

• Maximum cap raised to ₹10 lakh per day for select P2M transactions.

• P2P limits remain unchanged at ₹1 lakh per day.

• Member banks retain flexibility to enforce lower limits based on internal risk policies.

Revised UPI Limits by Category

1. Capital Market and Insurance Payments

• Old Limit: ₹2 lakh per transaction.

• New Limit: ₹5 lakh per transaction.

• Daily Cap: ₹10 lakh.
  This will help investors and policyholders make large payments without breaking them into multiple smaller transactions.

2. Government e-Marketplace & Tax Payments

• Old Limit: ₹1 lakh per transaction.

• New Limit: ₹5 lakh per transaction.
  This includes earnest money deposits (EMD), tender-related fees, and tax payments, ensuring smoother digital transactions with government platforms.

3. Travel and Tourism

• Old Limit: ₹1 lakh per transaction.

• New Limit: ₹5 lakh per transaction.

• Daily Cap: ₹10 lakh.
  With rising demand for premium travel packages, flight tickets, and hotel bookings, this enhancement supports high-value digital payments in the travel sector.

4. Credit Card Bill Payments

• Old Limit: ₹1 lakh.

• New Limit: ₹5 lakh per transaction.

• Daily Cap: ₹6 lakh.
  Users can now pay large credit card bills in a single transaction, eliminating the need to split payments.

5. Loan and EMI Collections

• New Limit: ₹5 lakh per transaction.

• Daily Cap: ₹10 lakh.
  This change benefits both borrowers and lenders by allowing seamless EMI and loan repayments through UPI.

6. Jewellery Purchases

• Old Limit: ₹1 lakh.

• New Limit: ₹2 lakh per transaction.

• Daily Cap: ₹6 lakh.
  The enhancement is modest but ensures smooth digital payments for big-ticket jewellery shopping.

7. Banking Services – Term Deposits

• Old Limit: ₹2 lakh.

• New Limit: ₹5 lakh per transaction and per day.
  This will enable customers to open or renew high-value deposits digitally with ease.

8. Digital Account Opening

• Unchanged Limit: ₹2 lakh.
  The NPCI has retained the existing cap for new account onboarding via UPI.

9. Foreign Exchange Payments via BBPS

• Old Limit: ₹1–2 lakh (varied earlier).

• New Limit: ₹5 lakh per transaction.

• Daily Cap: ₹5 lakh.
  This will ease international education fees, travel-related forex needs, and other global payments.

Why Higher UPI Limits Matter

The increase in UPI transaction limits addresses multiple real-world challenges:

• Seamless High-Value Payments: No need to split payments into smaller transactions.

• Convenience for Users: Insurance premiums, loan EMIs, credit card bills, and investments can now be handled in one go.

• Support for Merchants: Businesses benefit from instant settlements and smoother checkout experiences.

Expert Insights

Akash Sinha, CEO and Founder of Cashfree Payments, welcomed the move, saying:
“Raising UPI limits to ₹5 lakh per transaction and ₹10 lakh per day is a timely move that solves a very real problem for merchants handling high-value payments. With higher UPI limits, merchants can now offer a single, seamless digital checkout while maintaining instant settlement.”

Conclusion

With these changes, UPI is not just a convenient payment tool for small daily transactions but also a reliable platform for high-value payments across sectors such as capital markets, insurance, travel, and government services. The September 15, 2025 UPI rule update marks another step in strengthening India’s digital payment ecosystem, empowering both users and merchants with greater flexibility and efficiency.