The government has brought good news for UPI users. The National Payments Corporation of India (NPCI) has changed the rules for UPI payments.
Starting from September 1, 2025, users will be able to send gold loan, business loan, and fixed deposit (FD) amounts through UPI.
Loan accounts can now be linked with UPI, allowing payments from credit cards to business loans using popular UPI apps like Paytm, PhonePe, and Google Pay.
No Need to Visit the Bank for Loan Withdrawals
To make payments more simple and secure, NPCI has taken several key steps.
Until now, only savings or overdraft accounts could be linked with UPI. A few RuPay credit cards were also allowed, but the number was limited.
With the new rule, customers can now withdraw loan amounts like gold loan or personal loan online — no need to go to the bank physically.
New Limits and Conditions Set by NPCI
With the new system, users can now do P2PM (person-to-person merchant) transactions, in addition to P2P (person-to-person)
and P2M (person-to-merchant). You’ll also be able to withdraw cash via UPI, but there are some rules:
Maximum payment limit via UPI: ₹1 lakh per day
Cash withdrawal limit: ₹10,000 per day
Daily transaction limit (P2P): 20 transactions
Also, banks will control how the loan amount can be used.
For example, if you take a personal loan, your bank might allow you to spend it only on hospital bills or educational fees.
This change is expected to help small business owners, especially those who take loans of ₹2–3 lakh, as they won’t need to visit the bank every time to make payments.
