The National Payments Corporation of India (NPCI) has announced a significant revision in the Unified Payments Interface (UPI) framework. Enhancing the transaction limit for Person to Merchant (P2M) payments. The new cap stands at ₹5 lakh per transaction in selected categories. Marking a notable increase from earlier limits which typically ranged between ₹1 lakh and ₹2 lakh.
This decision directly benefits sectors such as insurance, capital markets, travel, and the Government e Marketplace. For insurance premium payments and investments, users can now make single transactions of up to ₹5 lakh. On the Government e-Marketplace, which also facilitates tax payments and earnest money deposits, the maximum per transaction limit has similarly been revised upward. Travel bookings and collection services are also included within this updated bracket.
How the new UPI limits will work?
While the per transaction ceiling has been raised to ₹5 lakh. The daily cap for verified merchants across these categories has been set at ₹10 lakh. Credit card bill payments through UPI have received a separate limit, allowing transactions of up to ₹5 lakh each but with a daily maximum of ₹6 lakh. On the other hand, Person to Person transfers remain capped at ₹1 lakh per day, ensuring that this relaxation applies only to merchant related transactions.
The revision is expected to improve convenience for users who frequently engage in high value payments. Previously, large insurance premiums, investments, or government related deposits often required internet banking or NEFT transactions. With the updated UPI limits, such payments can be completed instantly on the same platform already used for everyday transactions. Merchants in affected sectors are likely to see smoother collections and quicker settlement cycles. For consumers, the step reduces dependency on traditional channels and aligns with the larger goal of boosting digital adoption in high value payments. By expanding UPI beyond smaller retail transactions. NPCI has reinforced the role of the platform as a comprehensive digital payments infrastructure.
