In September 2025, the National Payments Corporation of India (NPCI) increased the Unified Payments Interface (UPI) transaction limit to Rs 5 lakh, only for those categories that align with tax payments.
- In addition to that, NPCI has raised the per-transaction limit and aggregate transaction limit for 24 hours (hrs) to Rs 10 lakh, for 12 other categories.
Exam Hints:
- What? Increase of per transaction limit and aggregate limit
- New Per-Transaction Limit: Rs 5 lakh
- New Aggregate Limit: Rs 10 lakh (12 other categories)
- Come into force: September 15, 2025
- Applicable: P2M transaction, except P2P transaction
- Categories come under Rs 5 lakh per transaction: capital markets, insurance, collections, travel, among others
Key Changes:
Effective from: As per NPCI’s directions, all banks, applications (apps), and Payment Service Providers (PSPs) are required to implement these enhanced limits from September 15, 2025.
Applicability: These enhanced UPI transaction limits will only be applicable to Person-to-Merchant (P2M) transactions with verified merchants.
Exemption: However, NPCI has clarified that Person-to-Person (P2P) transaction limits will remain the same i.e. at Rs 1 lakh per day.
Transaction Limits for Various Categories:
Per-transaction Limit of Rs 5 lakh & Cumulative Limit Rs 10 Lakh:
Capital Markets and Insurance: The per-UPI transaction limit for both capital markets and insurance has been raised from Rs 2 lakh per transaction to Rs 5 lakh per transaction.
- Similarly, any person/user will now be able to make payments totalling up to Rs 10 lakh within a 24-hr window.
- As per NPCI circular, per-transaction limit for placing an IPO bid through UPI will continue to be the same (at Rs 5 lakh) and does not fall under the enhanced limit of capital market-related transactions.
Travel and Government e-Market Place (EMD Payments): The per-transaction limit for both government e-Market Place (EMD Payments) or Merchant Category Code (MCC) 9311 and travel has been increased from daily transaction of Rs 1 lakh to Rs 5 lakh.
- Also, any person with verified merchant in these two categories can now make transactions totalling Rs 10 lakh within 24 hrs.
Collections: The per transaction limit for collections which include loan repayment-related transactions, Business-to-Business (B2B) collections, among others, raised from Rs 2 lakh to Rs 5 lakh, and also, the 24-hr limit has been increased to Rs 10 lakh.
Transaction Limits for Other Categories:
Credit Card Payments: The per-UPI transaction limit for credit card payments has been increased from Rs 2 lakh to Rs 5 lakh, and the 24-hr limit has been raised to Rs 6 lakh.
FX-Retail via BBPS: NPCI has set both per-transaction limit and cumulative 24-hr limit at Rs 5 lakh for FX-Retail via Bharat Bill Payment System (BBPS) category.
Digital Account Opening (for term deposits): Both per-transaction limit and cumulative 24-hr limit for this category has been set at Rs 5 lakh.
Jewellery & Digital Account Opening: The daily transaction limit for both ‘jewellery’ and ‘digital account opening’ has been set at Rs 2 lakh.
| Sl.No | Categories | Enhanced Limits | Cumulative Limits (24 hrs) * |
|---|---|---|---|
| 1 | Capital Market | Rs. 5 Lakh | Rs. 10 Lakh |
| 2 | Insurance | Rs. 5 Lakh | Rs. 10 Lakh |
| 3 | Government e-Market Place (EMD Payments) | Rs. 5 Lakh | Rs. 10 Lakh |
| 4 | Travel | Rs. 5 Lakh | Rs. 10 Lakh |
| 5 | Credit Card Bill Payments | Rs. 5 Lakh | Rs. 6 Lakh |
| 6 | Collections | Rs. 5 Lakh | Rs. 10 Lakh |
| 7 | Business/Merchant (Including Pre-Approved Payments) | Rs. 5 Lakh | NA |
| 8 | Jewellery | Rs. 2 Lakh | Rs. 6 Lakh |
| 10 | FX Retail use case with BBPS Platform | Rs. 5 Lakh | Rs. 5 Lakh |
| 11 | Digital Account Opening for Term Deposits | Rs. 5 Lakh | Rs. 5 Lakh |
| 12 | Digital Account Opening – Initial Funding | Rs. 2 Lakh | Rs. 2 Lakh |
About National Payments Corporation of India (NPCI):
It is an apex body that regulates the retail payment and settlement system in India. It was launched as a joint initiative of Reserve Bank of India (RBI) and India Banks’ Association (IBA).It was set up under the provisions of Payment and Settlement Systems (PSS Act, 2007).
Managing Director (MD) and Chief Executive Officer (CEO) – Dilip Asbe
Headquarters- Mumbai, Maharashtra
Established- 2008
