NPCI Raises Transaction Limit for UPI Users

• 05 Sep 2025
• 399 Views

The National Payments Corporation of India has come up with a major update for UPI users. From 15 September 2025 onwards, the UPI transaction limit has been majorly increased for select payments.

Until now, the UPI payments were limited to Rs. 1 lakh per day. However, the new rules permit transactions of up to Rs. 10 lakh within a 24 hr period for specific categories. Keep reading to know all the important details about the UPI update!

Why the Increase in UPI Limit?

You must be wondering why NPCI increased the UPI limit. Well, this update comes at a crucial time for taxpayers. This is because September 15 is deadline for tax payments in India. So, to help in high value digital transactions, the NPCI has revised the cap for tax related payments:-

• Tax-related payments (MCC 9311): Now Rs. 5 lakh per transaction, with a maximum of Rs. 10 lakh in a single day. 

• The government expects this change to benefit taxpayers, businesses and professionals who were previously facing the restrictions due to the earlier limits. 

Where Will the New Limit Apply? 

The revised cap will only apply to Person-to-Merchant (P2M) transactions i.e., payments made to verified merchants, including:-

• Tax portals

• Banks

• Insurance companies

• Stock brokers

• Loan repayment platforms 

On the other hand, Person-to-Person (P2P) transfers will continue to have a limit of Rs. 1 lakh per day.

New UPI Transaction Limits Based on Category

Provided below is a list of updated limits:-

• Tax Payments (MCC 9311): Rs. 5 lakh per transaction. Max. limit of Rs. 10 lakh in a day.

• Insurance and Capital Markets: Earlier limit was Rs. 2 lakh. Now, it is Rs. 5 lakh per transaction. Max. limit is Rs. 10 lakh in a day.

• IPO Applications via UPI: Limit stays unchanged at Rs. 5 lakh per application.

• Digital Accounts & Fixed Deposits (FDs): Up to Rs. 5 lakh permissible per transaction.

• Foreign Exchange: Limit of Rs. 5 lakh per transaction.

• Credit Card Bills Payments: Earlier limit was Rs. 2 lakh. Now, it is Rs. 5 lakh per transaction. Max. limit is Rs. 6 lakh in a day.

• Loan EMI & B2B Collections: Rs. 5 lakh per transaction. Max. limit is Rs. 10 lakh daily.

Who will Benefit from UPI Limit Update?

The following entities are going to benefit from the UPI transaction limit update:

• Taxpayers who make large-value payments.

• Consumers who open digital fixed deposits, transact in forex or pay credit card bills.

• Business owners/professionals who invest in the share market, pay loan EMIs or insurance premiums.

Source: MSN