NPCI Raises UPI Transaction Limits for High-Value Payments

Bhubaneswar : The National Payments Corporation of India (NPCI) has increased the Unified Payments Interface (UPI) transaction limit for person-to-merchant (P2M) payments to Rs 10 lakh in 24 hours for specified categories, effective Monday. The person-to-person (P2P) limit, however, remains unchanged at Rs 1 lakh per day.

Relief from earlier restrictions

Users earlier faced limitations, often splitting payments or relying on traditional methods like cheques or bank transfers. The revised framework addresses these issues by enabling smoother high-value digital payments.

Revised limits across key sectors

For capital market and insurance payments, the per-transaction cap has been 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, now allow up to Rs 5 lakh per transaction, up from Rs 1 lakh earlier.

Travel, loans, and credit card bills covered

Transaction caps for travel bookings, loan repayments, and EMI collections have also been raised to Rs 5 lakh per transaction. Credit card bill payments can now go up to Rs 5 lakh in a single transaction, though the daily maximum is fixed at Rs 6 lakh. Loan and EMI repayments are allowed up to Rs 5 lakh per transaction, with a Rs 10 lakh daily limit.

Boost for jewellery and banking services

Jewellery purchases now allow transactions of up to Rs 2 lakh per transaction and Rs 6 lakh per day. Banking services like term deposits via digital onboarding are capped at Rs 5 lakh per transaction and per day, up from the earlier Rs 2 lakh.

Industry welcomes move

Fintech companies and industry leaders have praised the changes, highlighting their benefits for sectors such as insurance, investments, and travel, where higher-value transactions are common. Customers can now pay insurance premiums, renew policies, or book high-value travel tickets in one go, improving convenience and efficiency.

Enhanced security and trust

The increased limits apply only to verified merchants, ensuring a safer payment environment. NPCI confirmed that users need not take any extra steps, as changes will be applied automatically. Mandatory multi-factor authentication and strict merchant vetting will support these higher-value transactions.