In a major overhaul of the UPI rules, the National Payments Corporation of India (NPCI) has announced significantly higher transaction limits for Person-to-Merchant (P2M) payments starting September 15, 2025. The changes affect verified merchants in certain sectors and allow much larger payments in categories such as insurance, travel, investments, and credit card bills.
Under the new norms:
- For P2M transactions with verified merchants in specified categories, the per-transaction limit has been raised to ₹5 lakh, with a ₹10 lakh ceiling for total daily transactions in many cases.
- Transactions in sectors like insurance, capital markets, travel, credit card bill payments and loan/EMI collections will benefit from these increased limits.
- For example, insurance and capital market investments will see limits move from ₹2 lakh per payment to ₹5 lakh, and a maximum of ₹10 lakh in a day.
- On the Government e-Marketplace (GeM), which handles payments like taxes and earnest money deposits, the per-transaction limit rises from ₹1 lakh to ₹5 lakh.
- Travel bookings via UPI also get a boost: per-transaction limits increase from ₹1 lakh to ₹5 lakh, with a ₹10 lakh daily cap.
- Credit card bill payments can now reach ₹5 lakh per transaction, though the daily cap in this category is set slightly lower, around ₹6 lakh.
- Jewellery purchases will see moderate increases: per-transaction limit rises to ₹2 lakh, with a daily cap of about ₹6 lakh.
Importantly, Person-to-Person (P2P) UPI transactions—such as sending money to friends or family—won’t see changes; the daily transfer limit remains ₹1 lakh.
These changes aim to make UPI more useful for higher-value payments without forcing users or businesses to split amounts into multiple smaller transactions. Experts believe this will help sectors that routinely deal with large sums, reducing friction in digital payments.
To ensure compliance, merchants must be verified and belong to specified categories. Payment service providers and banks will implement the new limits starting September 15, following NPCI’s directive.
Overall, these revisions reflect the evolving digital payments landscape in India, recognizing that many users and businesses need to do larger transactions through platforms like UPI more conveniently and efficiently.