By Avishek Banerjee
Copyright republicworld
The National Payments Corporation of India (NPCI),a public sector company that operates retail payments and settlement systems in India, has announced a significant revision to the Unified Payments Interface (UPI) transaction framework, increasing the daily limit for Person-to-Merchant (P2M) payments. The new rules, which come into effect from September 15, are aimed at enabling seamless high-value transactions in India’s rapidly growing digital payments ecosystem.According to NPCI’s circular issued last month, users will now be able to make UPI transactions of up to Rs 10 lakh per day for “selected” and verified “merchant categories”. The move is expected to make it easier for consumers to use UPI for large-scale expenses such as hospital bills, educational fees, or other verified high-value services, thereby reducing the reliance on traditional modes of payment like cheques, demand drafts, or NEFT transfers.Industry experts reckon that the enhancement of the UPI merchant limit could accelerate the adoption of digital payments among sectors that still rely heavily on offline or manual processes for big-ticket transactions. With UPI already accounting for the lion’s share of retail digital payments in India, the increased limit further strengthens its position as the country’s preferred payment method.Also Read: UPI Achieves New Milestone: 20 Billion Transactions in August, Value Nears Rs 25 Lakh Crore | Republic WorldIt is important to note that while the Person-to-Merchant (P2M) limit has been revised upwards, the ceiling for Person-to-Person (P2P) transfers remains unchanged. Users can continue to send or receive up to Rs 1 lakh per day when transferring funds directly to another individual. This ensures that while “high-value merchant transactions” are facilitated, P2P transfers remain streamlined and secure under the existing cap.The revision comes at a time when UPI transactions are consistently hitting record volumes month after month, reflecting India’s growing comfort with cashless payments. By opening doors for higher-value digital transactions, NPCI’s latest move is likely to further reinforce India’s position as one of the world’s leading digital payment economies.It may be recalled that the UPI has exceeded the 20 million monthly transaction volume milestone in August, according to (NPCI), which is responsible for running UPI. The platform recorded 20.01 billion transactions in August 2025 as compared to 19.47 billion transactions in July.
