In a significant move to enhance digital payments and support high-value transactions, the National Payments Corporation of India (NPCI) has announced an increase in Unified Payments Interface (UPI) transaction limits for person-to-merchant (P2M) payments. Effective Monday, selected categories can now process up to Rs 10 lakh in a 24-hour period, while person-to-person (P2P) limits remain at Rs 1 lakh per day.
The decision is aimed at enabling larger payments across critical sectors, including capital markets, insurance, travel, and government e-Marketplace (GeM), reducing dependency on traditional methods like cheques or multiple bank transfers.
Key Changes to UPI Limits
- Capital Market & Insurance Payments: Per-transaction limit raised from Rs 2 lakh to Rs 5 lakh, with a daily ceiling of Rs 10 lakh.
- Government e-Marketplace (GeM) Transactions: Including earnest money deposits and taxes, the per-transaction limit is now Rs 5 lakh, up from Rs 1 lakh.
- Travel Bookings, Loan Repayments, EMI Collections, and Credit Card Payments: Per-transaction limit increased to Rs 5 lakh. Credit card payments have a daily cap of Rs 6 lakh, while loan and EMI collections allow up to Rs 10 lakh per day.
- Jewellery Purchases: Per-transaction limit doubled to Rs 2 lakh, with a daily ceiling of Rs 6 lakh.
- Banking Services (e.g., Term Deposits via Digital Onboarding): Limit raised from Rs 2 lakh to Rs 5 lakh per transaction and per day.
Boosting Convenience and Efficiency
Industry experts have praised the changes, calling them a game-changer for businesses and consumers. Higher UPI limits tackle long-standing issues in sectors where customers previously had to split payments into multiple transactions, particularly in insurance, investments, and travel.
For instance, individuals can now pay insurance premiums or renew policies in a single transaction, accelerating policy servicing and improving customer convenience. Similarly, travel agencies, fintech firms, and online marketplaces will benefit from smoother high-value transactions.
Safety Measures and Merchant Verification
To ensure security, higher limits apply only to verified merchants, with mandatory multi-factor authentication and stricter vetting protocols. NPCI confirmed that eligible users will see the changes applied automatically, requiring no additional action.
By raising these transaction thresholds, NPCI hopes to strengthen trust in digital payments, encourage adoption of UPI for larger transactions, and reduce friction in high-value sectors that historically relied on traditional banking methods.
With this move, India’s UPI ecosystem takes another step toward becoming a seamless platform for both everyday and high-value payments, reinforcing its position as a cornerstone of the country’s digital economy.
