The National Payments Corporation of India is coming with major UPI rule amendments that will be implemented from September 15, 2025, including raised transaction limits for verified merchants and selected high-value categories. While the P2P transaction limits remain at current levels, P2M payments for eligible sectors are seeing a significant increment.
Overview of New UPI Rules
NPCI is raising UPI limits for specific transaction types and verified merchants. Users can now make higher-value payments in single transactions, thus providing better convenience for greater financial activities, without having to resort to splitting a massive payment into many smaller transactions.
Key Changes Effective September 15
- Capital Markets, Insurance, Government Payments: Per-transaction limit raised from ₹2 lakh to ₹5 lakh, with a cumulative daily limit of ₹10 lakh for verified merchants.
- Credit Card Payments & Collections: Credit card payments per transaction raised to ₹5 lakh; various collections such as loan repayments also get higher limits.
- Travel, Tax Payments, Term Deposits: Enhanced per-transaction and daily limits for these categories as well.
- Peer-to-Peer Transfers: Unchanged; still capped at ₹1 lakh per day.
- Digital Account Opening & Term Deposit Funding: Term deposits and digital account initial funding see raised caps, boosting digital banking convenience.
Why These Changes?
NPCI is addressing the significant increase in UPI usage and the demand for greater flexibility and efficiency in digital payments. These updates make it easier, cheaper, and faster for users to handle large financial transactions securely and instantly.
Impact on Users and Merchants
- Users: Major convenience for those making large payments for investments, insurance, travel, or other big-ticket expenditures. Less friction and reduced need for splitting transactions.
- Merchants: Verified merchants can receive bigger payments, improving operational efficiency and trust.
- Apps: Platforms like PhonePe, Paytm, and Google Pay will have to implement these limits and provide secure high-value transaction support.
Category-Wise Transaction Limits Table
| Category | Previous Limit (₹) | New Limit (₹) per Transaction | 24h Cumulative Limit (₹) |
| Capital Markets, Insurance | 2 lakh | 5 lakh | 10 lakh |
| Government e-Market Place (EMD) | 1 lakh | 5 lakh | 10 lakh |
| Travel | 1 lakh | 5 lakh | 10 lakh |
| Credit Card Payments | 2 lakh | 5 lakh | 6 lakh |
| Collections | 2 lakh | 5 lakh | 10 lakh |
| Jewellery | 1 lakh | 2 lakh | 6 lakh |
| Peer-to-Peer (P2P) | 1 lakh | 1 lakh | 1 lakh |
Security and Compliance
The higher limits apply only to verified merchants, maintaining a strong security layer while expanding transaction flexibility. Banks, apps, and payment service providers are required to update their systems by September 15 to comply with these new standards.
Conclusion
As of September 15, 2025, when these new rules come into force, UPI moves one step further toward efficient, flexible, and fast payments across India. The benefits will go to both buyers and verified merchants getting their transactions done in a streamlined, trustworthy environment.”
Disclaimer: This article is for informational purposes only. Please verify details with official NPCI updates or your bank before making financial decisions.
Also Read: Why UPI Payment Fails – Common Reasons & Easy Fixes