The NPCI (National Payments Corporation of India) has raised the UPI transaction limits for specific categories substantially. The new rules, applicable from September 15, 2025, are designed to facilitate high-value digital payments in capital market investments, insurance, tourism, and loan repayment.
While the latest decision widens the reach of UPI for large-value payments, Person-to-Person (P2P) transactions continue at Rs 1 lakh per day.
UPI (Unified Payments Interface) broke all records and became the most used money transfer network in the country, crossing 18 billion transactions in a month. With dependency on grocery payments and gold buying through UPI rising swiftly, NPCI felt the need to expand it into a larger-value system, especially for markets where customers have traditionally relied on conventional bank transfers or cards.
The revised limits are designed to reduce business friction, promote the use of UPI in formal financial channels, and compete with conventional NEFT and RTGS channels used for higher-value payments.
The per-transaction limit for capital market investments and insurance premium payments will now increase from Rs 2 lakh to Rs 5 lakh. Users can make multiple such payments, with a limit of Rs 10 lakh a day.
This will make UPI a preferred channel for retail investors, who tend to pay lump sums for mutual funds or insurance renewals.
New caps have also been enacted for payments to the Government e-Marketplace (GeM) and tax remittances, with the limits being modified to Rs 5 lakh per transaction from Rs 1 lakh.
For travel bookings, UPI payments will now enable transactions of up to Rs 5 lakh per booking, as opposed to the previous limit of Rs 1 lakh, with a daily limit of Rs 10 lakh. This would be especially helpful for airline and railway ticket bookings, which tend to exceed earlier thresholds.
Consumers can settle credit card bills of up to Rs 5 lakh in one payment, although the daily limit is Rs 6 lakh. Likewise, loan and EMI collections were upgraded to Rs 5 lakh per transaction, with a daily limit of Rs 10 lakh.
In the high-end retail segment, UPI-based jewellery purchases will now allow payments of Rs 2 lakh per transaction, from Rs 1 lakh, with a limit of Rs 6 lakh per day.
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The cap for digital onboarding of term deposits has been increased to Rs 5 lakh per transaction from Rs 2 lakh. However, the cap for digital account opening is still Rs 2 lakh.
In another cross-border remittance boost, foreign exchange payments through BBPS (Bharat Bill Payment System) will now be permitted up to Rs 5 lakh per transaction, with the ceiling of the same amount per day.
With significant changes in merchant categories, there is still a limit for P2P transfers of Rs 1 lakh per day. The idea is to retain UPI as a retail payment mechanism, but with increased flexibility for high-value payments under proper regulation. Going forward, these amendments will allow UPI to process payments exceeding small-value retail transactions, strengthening its position as a competitor to card networks and other bank transfer mechanisms.