Why Did NPCI Increase Daily UPI Payment Limits on P2M Transactions to Rs 10 Lakh?
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Synopsis
In a significant move, the NPCI has raised UPI transaction limits for P2M payments to Rs 10 lakh per day. This adjustment aims to encourage larger transactions and improve digital payment adoption in critical sectors. Discover how this change impacts users and enhances the convenience of digital payments.
Key Takeaways
- UPI P2M transaction limit increased to Rs 10 lakh.
- Insurance and capital market payments limit raised to Rs 5 lakh.
- Government e-Marketplace transaction limits now Rs 5 lakh.
- Enhanced security protocols include multi-factor authentication.
- Changes will automatically apply to eligible users.
Mumbai, Sep 15 (NationPress) The National Payments Corporation of India (NPCI) has officially increased the Unified Payments Interface (UPI) transaction limits for person-to-merchant (P2M) payments to a maximum of Rs 10 lakh within a 24-hour period for designated categories, starting this Monday.
This initiative aims to facilitate larger transactions in crucial sectors, thereby promoting digital adoption in high-value segments. The NPCI has kept the person-to-person (P2P) limit unchanged at Rs 1 lakh daily.
Previously, users faced limitations that often forced them to divide payments or revert to conventional methods like cheques or bank transfers.
Under the updated guidelines, the limit for capital market and insurance payments has been raised from Rs 2 lakh to Rs 5 lakh per transaction, with a maximum daily limit of Rs 10 lakh.
Additionally, the transaction limit for the Government e-Marketplace, which includes earnest money deposits and taxes, has been increased to Rs 5 lakh per transaction, up from Rs 1 lakh. Limits for travel bookings, loan repayments, and EMI collections have also been boosted to Rs 5 lakh from Rs 1 lakh.
Payments for credit card bills can now go up to Rs 5 lakh in a single transaction, although the overall daily limit is capped at Rs 6 lakh.
For loans and EMI collections, users can now transact Rs 5 lakh per transaction with a daily ceiling of Rs 10 lakh.
Moreover, purchases of jewellery have seen a slight enhancement, with the UPI limit raised from Rs 1 lakh to Rs 2 lakh per transaction and Rs 6 lakh allowed daily. Banking services, such as term deposits through digital onboarding, now have a cap of Rs 5 lakh for both transactions and daily limits, up from Rs 2 lakh.
Industry leaders and fintech companies have welcomed these changes as advantageous for businesses and consumers, addressing a significant hurdle in sectors such as insurance, investments, and travel where customers previously had to split their transactions.
Individuals can now conveniently pay insurance premiums or renew policies in a single transaction, which accelerates policy servicing and enhances customer satisfaction.
Importantly, the higher UPI transaction limits are only available for verified merchants, introducing an additional layer of security and fostering trust among users.
Industry experts underscore that enhanced security measures, including mandatory multi-factor authentication and rigorous merchant vetting, will support these increased limits. NPCI has stated that eligible users will automatically benefit from these changes, requiring no additional actions.
Point of View
I believe the NPCI's decision to raise UPI limits is a pivotal step towards modernizing our financial ecosystem. This change not only streamlines transactions but also advances financial inclusion and digital accessibility. Such measures will undoubtedly enhance user experience and trust in digital payment systems.
NationPress
15/09/2025
Frequently Asked Questions
What is the new UPI limit for P2M payments?
The new UPI limit for person-to-merchant (P2M) payments has been raised to Rs 10 lakh per day.
When did the new limits come into effect?
The new transaction limits came into effect on Monday, September 15.
Are there any changes to the P2P limits?
No, the person-to-person (P2P) transaction limit remains at Rs 1 lakh per day.
Who can benefit from the higher transaction limits?
Only verified merchants will be allowed to benefit from the increased UPI transaction limits.
What security measures are in place for these transactions?
Enhanced security protocols, including mandatory multi-factor authentication and stricter merchant vetting, will support the increased limits.
