The National Payments Corporation of India (NPCI) has announced a significant change to the UPI (Unified Payments Interface) system. Starting September 15, 2025, UPI users will be able to make single transactions of up to ₹5 lakh for a range of high-value services. This move is designed to make digital payments more efficient for users who frequently deal with large transactions, including tax payments, insurance premiums, capital market investments, travel bookings, and credit card bill payments.
What Has Changed?
Previously, most UPI transactions were limited to ₹1 lakh per transaction, which posed a challenge for high-value payments. The new limits introduced by NPCI increase the transaction cap significantly, but only for certain categories of payments made to verified merchants.
New UPI Limits at a Glance
| Category | New Per-Transaction Limit | New Daily Limit |
| Tax Payments (e.g., Income Tax, GST) | ₹5,00,000 | ₹10,00,000 |
| Insurance Premiums | ₹5,00,000 | ₹10,00,000 |
| Capital Market Investments | ₹5,00,000 | ₹10,00,000 |
| Travel and Hospitality | ₹5,00,000 | ₹10,00,000 |
| Credit Card Bill Payments | ₹5,00,000 | ₹6,00,000 |
| Foreign Exchange (via BBPS) | ₹5,00,000 | ₹10,00,000 |
| Digital Bank Account – Term Deposits | ₹5,00,000 | ₹10,00,000 |
| Digital Bank Account – Initial Funding | ₹2,00,000 | ₹2,00,000 |
| Jewellery Purchases | ₹2,00,000 | ₹6,00,000 |
| Person-to-Person (P2P) Transfers | ₹1,00,000 (No Change) | ₹1,00,000 (No Change) |
Note: These limits are specifically for payments to merchants in predefined categories, not for peer-to-peer transfers.
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Who Can Use the New Limits?
This increase is applicable only to transactions made to verified businesses and service providers in certain sectors. Regular person-to-person (P2P) transfers still fall under the earlier cap of ₹1 lakh.
The update will benefit:
- Individuals making income tax or GST payments
- Customers paying high-value insurance premiums
- Investors transacting in stocks, IPOs, or mutual funds
- Travelers booking international or luxury trips
- Credit card users paying large monthly bills
- Customers opening or funding digital bank accounts
- People purchasing foreign exchange or making BBPS payments
These changes are expected to simplify how people and businesses handle payments in sectors that typically involve large sums.
Also Read: Top UPI Apps in India
When Does This Start?
The revised limits will go into effect from September 15, 2025. All UPI-enabled banks, apps, and payment service providers are required to support these changes by this date.
However, it is important to note:
- Banks may take time to implement the new limits.
- Some banks may choose to enforce lower limits than the NPCI maximum, depending on their internal policies.
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How to Use the New Limits
To make full use of the updated transaction caps, users should:
- Use a UPI app that supports the new limits: Make sure your app is updated and compliant with the latest UPI standards.
- Transact only with eligible merchants: The business must fall under specific merchant category codes (MCCs) authorized for high-value payments.
- Check your bank’s policy: Confirm that your bank has enabled the ₹5 lakh per-transaction limit for your account and the relevant merchant type.
Important Notes
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Suggested Read: Set UPI PIN without Debit Card
Conclusion
The decision to raise the UPI transaction limit to ₹5 lakh reflects India’s push toward a more digital and cashless economy. This change makes it easier for users to handle high-value payments without needing to rely on traditional banking methods like NEFT, RTGS, or IMPS.
As more apps and banks begin to implement these new limits, UPI will become even more versatile and user-friendly. Whether it’s for paying taxes, funding investments, or settling credit card bills, UPI is now equipped to handle significantly larger financial operations with ease.
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