NPCI Raises UPI Transaction Limit to ₹5 Lakh Per Transaction

NPCI Raises UPI Transaction Limit to ₹5 Lakh Per Transaction

The National Payments Corporation of India (NPCI) has announced a significant increase in the Unified Payments Interface (UPI) transaction limits to facilitate higher-value digital payments. Effective from September 15, 2025, users can now transact up to ₹5 lakh per transaction and a cumulative ₹10 lakh within 24 hours for select verified merchant categories. This milestone move is aimed at strengthening India’s digital payment ecosystem by enabling smoother and larger transactions through the popular UPI platform.

What’s New in UPI Transaction Limits?

• Per Transaction Limit Raised to ₹5 Lakh: This higher cap applies to identified verified merchant transactions across several critical categories such as capital markets, insurance payments, government e-Marketplace, travel, and more.
• Cumulative 24-Hour Limit Increased to ₹10 Lakh: Users can now send or receive a total of ₹10 lakh in a single day through UPI for these select categories.
• Person-to-Person (P2P) Payments: The previous daily limit of ₹1 lakh for P2P transfers remains unchanged to ensure security and risk management.

Categories Benefitting from Increased Limits

Impact on Users and Businesses

• Enhanced Convenience: Users can conduct large-value payments seamlessly without resorting to multiple transactions or cash payments.
• Boost to Digital Economy: Higher limits support sectors like investments, insurance, travel bookings, and government transactions moving swiftly to digital platforms.
• Increased Adoption: Facilitates SMEs, corporates, and individuals to favor UPI for high-value payments, encouraging inclusive growth.
• Risk and Security: Person-to-person payment limits remain controlled to safeguard against fraud, maintaining a secure payment environment.

What Remains Unchanged?

• The ₹1 lakh daily limit persists for typical person-to-person (P2P) transactions, ensuring checks and balances.
• Negative marking, transaction limits specific to banks and wallets may vary according to internal policies.
• Wallet-based merchant payments above ₹2,000 will continue to attract merchant fees but remain free for personal users.

Conclusion

NPCI’s hike in UPI transaction limits to ₹5 lakh per transaction and ₹10 lakh per day for specific transaction categories marks a new chapter in India’s digital payments journey. It aligns with the government’s vision of a cashless economy by enabling secure and effortless high-value transfers on a reliable real-time payment system. Users and businesses alike stand to benefit from these progressive steps toward an efficient digital financial infrastructure.