There is good news for digital payment users. The National Payments Corporation of India (NPCI) has increased the UPI transaction limits, making it easier to make high-value payments. The new rules will be effective from September 15, 2025.
This update will benefit people who regularly pay for things like insurance premiums, loan EMIs, stock investments, government charges, or large travel bookings.
Where Has the UPI Limit Been Increased?
1. Capital Market and Insurance
Earlier: ₹2 lakh per transaction
Now: ₹5 lakh per transaction, and ₹10 lakh per day
2. Government e-Marketplace & Tax Payments
Earlier: ₹1 lakh
Now: ₹5 lakh per transaction
3. Travel Booking
Earlier: ₹1 lakh
Now: ₹5 lakh per transaction, ₹10 lakh daily limit
4. Credit Card Bill Payment
New limit: ₹5 lakh per transaction, ₹6 lakh per day
5. Loan EMIs and Collections
Now allowed: ₹5 lakh per transaction, up to ₹10 lakh daily
6. Jewellery Shopping
Earlier: ₹1 lakh
Now: ₹2 lakh per transaction, ₹6 lakh daily limit
7. Banking Services (Term Deposit)
Earlier: ₹2 lakh
Now: ₹5 lakh for digital onboarding
8. Foreign Exchange via BBPS
Now: ₹5 lakh per transaction, ₹5 lakh per day
9. Digital Account Opening
Limit remains ₹2 lakh, no change
Where the Limit Has Not Changed
The new limits only apply to Person-to-Merchant (P2M) payments, i.e., payments made to businesses, services, or merchants.
For Person-to-Person (P2P) transactions, the daily limit remains ₹1 lakh.
Why This Change Matters
Now, users won’t need to break large payments into smaller parts.
You can pay insurance premiums or loan EMIs in one go.
Government fees and stock market investments can be paid more easily.
Buying jewellery or high-value items will also be more convenient using UPI.
Expert View
Akash Sinha, CEO of Cashfree Payments, said the increase to ₹5 lakh per transaction and ₹10 lakh per day is timely.
Now, businesses can offer quick, one-click digital checkouts even for large payments and receive instant settlements.
