UPI Transaction Limit Hits ₹10 Lakh
The transaction limit for UPI has been raised to ₹10 lakh. The significant increase is expected to boost high-value purchases and could facilitate larger B2B payments within local supply chains, benefiting merchants dealing in electronics or jewelry.
The National Payments Corporation of India (NPCI) initiated this significant update, which took effect on September 15, 2025. The change is specifically for Person-to-Merchant (P2M) transactions and applies only to merchants who are officially verified. This revision introduces a per-transaction ceiling of ₹5 lakh for several categories. These include payments for capital markets, insurance premiums, and transactions on the Government e-Market Place. Previously, the per-transaction limit for categories like capital markets and insurance was ₹2 lakh. The ₹10 lakh daily limit is a cumulative cap for high-value payments within a 24-hour period in these specified categories. For instance, a user can make two separate transactions of ₹5 lakh each for insurance premiums or capital market investments in a single day. It is important to note that the standard peer-to-peer (P2P) transaction limit remains unchanged at ₹1 lakh per day. This ensures that while high-value merchant payments are now easier, regular individual transfers are still subject to the previous regulations. For other specific categories, the limits have also been adjusted. Credit card bill payments now have a per-transaction limit of ₹5 lakh, with a daily cap of ₹6 lakh. This move by the NPCI aims to streamline larger digital payments and reduce the need to split substantial transactions. While the NPCI has set these new upper limits, individual banks and payment service providers still have the discretion to set their own internal caps based on their risk management policies. This means the actual limit experienced by a user might vary depending on their bank.
