By News Karnataka

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New Delhi: The National Payments Corporation of India (NPCI) has announced a revised framework for UPI transactions, increasing limits for select categories to promote high-value digital payments. The updated rules, which come into effect from September 15, 2025, aim to streamline payments in sectors such as capital markets, insurance, travel, and loan repayments.

Key changes in UPI transaction limits

Under the new framework, users can transfer up to Rs 10 lakh per day for specified merchant categories via Person-to-Merchant (P2M) transactions. The Person-to-Person (P2P) limit remains capped at Rs 1 lakh per day.

The revised per-transaction limits are as follows:

Capital markets, insurance, and government e-marketplace payments: Up to Rs 5 lakh per transaction, with daily caps ranging between Rs 6 lakh and Rs 10 lakh.
Travel bookings, credit card settlements, and loan repayments: Rs 5 lakh per transaction.
Jewellery purchases: Rs 2 lakh per transaction.
Term deposits through digital onboarding: Rs 5 lakh per transaction.
Digital account opening: Unchanged at Rs 2 lakh.

These adjustments are designed to facilitate smoother high-value transactions for users and merchants alike.

Benefits for merchants and consumers

Industry experts say the increase in UPI limits will simplify high-value payments, including insurance premiums, EMIs, and investment contributions. Merchants benefit from single-step digital checkouts, reducing the need for multiple transactions and ensuring real-time settlement of large payments.

“This change addresses a longstanding concern for merchants handling high-value payments through UPI. The revised limits will help improve user experience and reduce transaction friction,” said a payments industry analyst.

Consumers making investments or paying EMIs digitally will no longer have to split payments across multiple transactions, saving time and reducing processing complexity.

NPCI’s outlook

NPCI has emphasised that the move is part of broader efforts to enhance UPI as a versatile digital payments platform in India. By raising limits for specific merchant categories, the framework ensures that the platform continues to meet evolving consumer needs, particularly for high-value financial transactions.

The updated framework also highlights NPCI’s commitment to boost digital adoption in India, enabling users to manage diverse payments—ranging from government services to investments—within a single unified platform.

The revised UPI transaction limits are expected to strengthen India’s digital payments ecosystem, making it easier for consumers and merchants to handle large-value payments seamlessly. With these changes, UPI is poised to become a preferred option not only for everyday transactions but also for high-value financial services across sectors.