National Payments Corporation of India (NPCI) has announced new transaction limits on Unified Payments Interface (UPI) to allow higher-value digital payments across select categories. The move, effective from 15 September 2025, aims to facilitate seamless large-value transactions such as insurance premiums, EMIs, investments, and travel bookings, while keeping regular person-to-person (P2P) transfers capped at ₹1 lakh per day.
Key Highlights
- New UPI Limit: Up to ₹10 lakh in 24 hours for verified merchant payments.
- Applicability:
- Only for verified merchants compliant with NPCI guidelines.
- Member banks may set lower internal limits as per their policies.
- Regular P2P Transfers: Remain capped at ₹1 lakh per day.
- Effective Date: 15 September 2025.
- Implementation: All apps & payment service providers must comply by deadline.
Enhanced UPI Limits by Category
| Category | Per Transaction Limit (₹) | Cumulative 24-Hour Limit (₹) |
| Capital Markets (Investments) | 5 lakh | 10 lakh |
| Insurance | 5 lakh | 10 lakh |
| Travel Bookings | 5 lakh | 10 lakh |
| Credit Card Bill Payments | 5 lakh | 6 lakh |
| Loans & EMI Collections | 5 lakh | 10 lakh |
| Business/Merchant Transactions | 5 lakh | — |
| Jewellery Purchases | 2 lakh | 6 lakh |
| FX Retail via BBPS | 5 lakh | 5 lakh |
| Banking Services (Term Deposits – Digital Onboarding) | 5 lakh | 5 lakh |
| Digital Account Opening – Initial Funding | 2 lakh | 2 lakh |
Why This Matters?
- Ease for Consumers: No need to split large-value payments for insurance, EMIs, investments, or travel.
- Boost to Digital Ecosystem: Encourages adoption of UPI in high-value transactions.
- Faster Merchant Settlements: Smoothens checkout experience for verified merchants.
- Financial Inclusion: Supports seamless digital account opening & term deposits online.
- Forex Transactions: FX-Retail via BBPS now covered, allowing purchase/sale of foreign exchange, loading forex cards, and delivery of forex notes with real-time rates.
NPCI:
- Established: 2008.
- HQ: Mumbai, Maharashtra.
- MD & CEO (2025): Dilip Asbe.
- Promoted by: RBI & Indian Banks’ Association (IBA).
- Umbrella organisation for digital payments in India.
- Other NPCI Products: RuPay, FASTag, IMPS, AePS, Bharat BillPay.
UPI (Unified Payments Interface):
- Launched: 2016 by NPCI.
- Governing Regulator: RBI.
- Oversees instant, interoperable, real-time digital transactions.
- UPI Milestone (2025): Crossed 20 billion monthly transactions in Aug 2025, with transaction value at ₹24.85 lakh crore.
BBPS (Bharat Bill Payment System):
- Regulated by: RBI.
- Managed by: NPCI Bharat BillPay Ltd. (NBBL).
- Provides a one-stop ecosystem for recurring payments (utility bills, EMIs, insurance, subscriptions).