The National Payments Corporation of India (NPCI) has announced revised transaction limits for certain Person-to-Merchant (P2M) payments using the Unified Payments Interface (UPI), effective 15 September 2025. These changes are aimed at easing large transactions in categories such as insurance, investments, travel, credit card bills, and more, while maintaining existing safeguards for peer-to-peer (P2P) transfers.
Under the new framework, users will be able to make individual merchant payments of up to ₹5 lakh in one go for eligible categories. Additionally, for many of these categories, the daily aggregate limit will increase to ₹10 lakh. Previously, many P2M transactions were constrained to much lower thresholds, forcing users to split payments or resort to alternative financial modes.
Key sectors benefiting from the update include capital markets, insurance, Government-eMarketplace services (including tax, earnest money, and other government dues), travel bookings, credit card bill payments, and loan or EMI collections. For example, travel and investment payments will now allow single transactions of up to ₹5 lakh, with daily totals reaching ₹10 lakh. Meanwhile, credit card bill payments will permit up to ₹5 lakh per transaction with a slightly lower daily cap.
Certain categories such as jewellery purchases and term deposits are also receiving enhanced limits. Jewellery payments per transaction will be permitted up to ₹2 lakh, with daily ceilings rising proportionally. Banking services related to digital account opening and term deposit funding will also see their UPI limits increase from earlier, lower amounts.
However, the changes do not affect P2P transfers—sending money between individuals will continue to be capped at ₹1 lakh per day. The higher limits apply only when payments are made to verified merchants in specified categories. Banks and payment service providers may set internal limits below the maximum caps, based on their risk policies.
NPCI clarifies that all participating UPI apps, banks, and payment service providers must implement these revised transaction limits from the effective date. No user action is required to benefit from the new limits, provided the merchant is verified and the payment category qualifies.
Financial analysts welcome the change, noting that such enhancements should reduce friction for users making large payments—for example, insurance premiums or investment contributions—and may encourage the use of UPI for high-value transactions across India’s digital payments landscape.