The National Payments Corporation of India (NPCI) on Thursday announced a major revision in Unified Payments Interface (UPI) limits for Person-to-Merchant (P2M) transactions, effective September 15.The move is aimed at making high-value digital payments easier and more convenient for users while ensuring strong security measures. Under the new rules, users can now make P2M transactions of up to Rs 10 lakh in a single day for specific verified merchant categories. However, the limit for Person-to-Person (P2P) transfers remains unchanged at Rs 1 lakh per day.
The changes are expected to benefit sectors where customers often faced restrictions on large transactions, forcing them to split payments or use traditional options such as cheques and bank transfers.
For investments in capital markets and insurance, the per-transaction limit has been increased from Rs 2 lakh to Rs 5 lakh, with a maximum of Rs 10 lakh in a day. On the Government e-Marketplace (GeM portal), including tax payments and earnest money deposits, the limit has been raised from Rs 1 lakh to Rs 5 lakh per transaction.
The travel sector has also received a significant boost, with the transaction cap rising from Rs 1 lakh to Rs 5 lakh, along with a daily limit of Rs 10 lakh. Credit card bill payments can now be made up to Rs 5 lakh per transaction, with a maximum of Rs 6 lakh in a day.
For loan repayments and EMI collections, the new limit is Rs 5 lakh per transaction and Rs 10 lakh per day. Jewellery purchases will now be allowed up to Rs 2 lakh in a single transaction, compared to the earlier limit of Rs 1 lakh, with a daily cap of Rs 6 lakh.
Banking services like term deposits through digital onboarding have also been enhanced, with limits raised to Rs 5 lakh per transaction and per day, up from Rs 2 lakh earlier. NPCI said these changes will make UPI more useful for high-value payments across critical sectors, encouraging wider adoption of digital transactions in India.