Summary of this article
· NPCI's latest circular raises UPI limits to Rs 5 lakh per transaction for certain transactions
· Effective date for changes is September 15, 2025
· Peer-to-peer transaction limits remains at Rs 1 lakh
The National Payments Corporation of India (NPCI) has increased the Unified Payments Interface (UPI) per-transaction limit for certain categories of transactions. The NPCI notified this through a circular issued on August 28, 2025, as an addendum to a previous circular dated August 24, 2024. According to the circular dated 2024, the per-transaction limit for tax payments was increased to Rs 5 lakh for verified merchants. The implementation date of the change was September 15, 2024. However, the new circular on August 28, 2025, has extended the higher limit to other transaction categories, as well.
Notably, this addendum is a supplementary document to the previous circular (August 2024), with some modifications by adding more categories for a higher per-transaction limit. These categories include sectors like capital markets, insurance, government payments, travel, and credit card bill payments. There is no change in the peer-to-peer (P2P) transaction limit, which remains at Rs 1 lakh.
Here are the new limits in the additional categories.
UPI Transaction Limits (Per Day)
Category Per Transaction Cumulative Limit
Capital Market Limit Rs 5 lakh Rs 10 lakh
Insurance Rs 5 lakh Rs 10 lakh
Government e-marketplace Rs 5 lakh Rs 10 lakh
Travel Rs 5 lakh Rs 10 lakh
Loan collection Rs 5 lakh Rs 10 lakh
Credit card bill Payment Rs 5 lakh Rs 6 lakh
Jewellery Rs 2 lakh Rs 6 lakh
Buying/Selling foreign exchange on Bharat
Bill Payment System (BBPS) using FX retail Rs 5 lakh Rs 5 lakh
Digital account opening for Term deposit Rs 5 lakh Rs 5 lakh
Initial finding on opening a digital account Rs 2 lakh Rs 5 lakh
Business Merchant payment Rs 5 lakh Not Applicable
Source: NPCI
For all other person-to-merchant (P2M) transactions, the limits will remain the same.
The member banks can determine their internal limits within the NPCI-prescribed ceilings.
The idea behind increasing the UPI transaction limits for certain categories is to facilitate payments of larger amounts in those sectors. The higher limits are aimed at making the large payment process convenient for users, such as, for insurance and investment, and so on.
So, instead of making multiple transactions for payment of a high amount, this change will allow higher amount single transactions to verified merchants.
Overall, the purpose of including more categories for higher transaction limit is to streamline and enable higher-value financial transactions for essential services easier and efficient through UPI for users.
The change is to be effective from September 15, 2025.
