UPI Limit Raised to 5 Lakh From September 15, Key Updates

National payment corporation of India (NPCI) has recently raised the per-transaction cap to Rs. 5 lakh effective by September 15, 2025. The per-transaction and 24-hours aggregate transaction limit has been enhanced for some categories. This move is expected to make UPI more versatile, especially for payments like insurance premiums, capital market investments, credit card bills, and government transactions. In this blog, we will discuss the new limit in detail.

Quick Summary

• New Per-transaction Limit raised from ₹2 lakh to ₹5 lakh
• Effective from September 15, 2025
• New 24-Hour Cumulative Limit up to ₹10 lakh for specific transactions
• Applicable only for P2M (Person-to-Merchant) transactions with verified merchants
• No change in P2P (Person-to-Person) Transactions

New Enhanced UPI Limit

According to the latest NPCI circular, issuing banks are required to ensure that the 24-hour cumulative transaction limits are maintained at their end. While NPCI has prescribed the overall transaction ceilings, it has also given member banks the flexibility to set their own internal limits in line with their policies. The revised limits will be applicable to person to merchant transactions but with verified merchants whereas person to person transactions limit is not changed and set at Rs.1 lakh per day 

ALSO READ: https://stablemoney.in/blog/upi-without-a-debit-card 

Categories with Enhanced UPI Limits

Here’s a detailed look at the categories where limits have been increased:

Capital Markets & Insurance

• The capital market and insurance limit has been increased from ₹2 lakh per transaction to  ₹5 lakh per transaction. 
• The maximum 24-Hour cumulative limit is ₹10 lakh
• Transactions under the capital market and insurance category may include transactions related to mutual funds, broking houses, insurance premiums, etc. 

Government e-Marketplace

• The government e-marketplace category’s transaction limit has been increased from ₹2 lakh to  5 lakh per transaction.
• The maximum 24-Hour cumulative limit is ₹10 lakh
• This is primarily used for tax payments and government fees.

Travel 

The transaction limit for the travel sector is increased from ₹1 lakh to ₹5 lakh with a maximum 24-hour cumulative limit of ₹10 lakh.

Credit Card Bill Payments

• The limit for the credit card bill payment category has been increased from ₹2 lakh per transaction to  ₹5 lakh per transaction.
• The maximum 24-Hour cumulative limit is ₹6 lakh
• This is used to pay off high-value credit card bills seamlessly via UPI.

Loan Repayments & Collections

• The transaction limit of loan loan repayments and collections is increased from ₹2 lakh per transaction to ₹5 lakh per transaction
• The maximum 24-Hour cumulative limit is ₹10 lakh
• This is used for loan EMI payments, B2B collections, recurring repayments.

FX-Retail via BBPS

• FX- retail through BBPS transaction limit is increased to ₹5 lakh per transaction
• The maximum 24-Hour cumulative limit is ₹5 lakh
• This is used for accessing real-time forex rates, making outward remittances, loading forex cards, or buying physical forex.

Term Deposits & Digital Account Opening

• The transaction limit for digital account opening of term Deposits is enhanced to ₹5 lakh per transaction and per day.
• The transaction limit for Digital Account Opening (Initial Funding) is enhanced to ₹2 lakh per transaction and per day.

ALSO READ: https://stablemoney.in/blog/upi-lite-benefits-limit-other-key-details

Conclusion

The increase in UPI transaction limits marks another milestone in India’s journey toward a cashless economy. By expanding the per-transaction cap to ₹5 lakh and introducing higher cumulative limits for key categories, NPCI has made UPI not just a tool for everyday payments but also for high-value financial activities.

From buying mutual funds to paying insurance premiums, from settling loan EMIs to handling government dues, UPI is evolving into a truly universal payment solution. All you need to remember is that the enhanced limits are applicable only with verified merchants and are subject to your bank’s policies.

This move is set to further strengthen UPI’s dominance in the digital payment ecosystem, bridging the gap between convenience and high-value financial transactions.