Gandhinagar: The National Payments Corporation of India (NPCI) has announced a sharp increase in Unified Payments Interface (UPI) transaction ceilings for select merchant categories, expanding its scope from small-value transfers to high-value commerce.

While peer-to-peer (P2P) transfers remain capped at ₹1 lakh per day, users will soon be able to make much larger payments to merchants under the new framework effective September 15, 2025.

What’s Changing

• Higher P2M Limits: For capital market investments, insurance premiums, loan EMIs, and government e-marketplace deposits, the transaction ceiling has been raised from ₹2 lakh to ₹5 lakh per payment, with a maximum of ₹10 lakh allowed in 24 hours.

• Travel & Credit Card Bills: Travel bookings and credit card bill payments can now be made up to ₹5 lakh per transaction. A daily cap of ₹10 lakh applies to travel, while card payments are limited to ₹6 lakh per day.

• Loan & EMI Collections: Enhanced to ₹5 lakh per transaction and up to ₹10 lakh daily.

• Jewellery Purchases: Raised modestly to ₹2 lakh per transaction, with a daily ceiling of ₹6 lakh.

• Banking Services: Term deposits via digital onboarding are now allowed up to ₹5 lakh per transaction, up from ₹2 lakh earlier. Digital account opening remains capped at ₹2 lakh.

• Forex Payments: Retail foreign exchange transactions through BBPS can now go up to ₹5 lakh per payment, with a daily cap of ₹5 lakh.

Why It Matters

The enhanced limits are expected to:

• Reduce the need to split large payments into multiple transactions.

• Simplify payments for insurance, investments, and loans.

• Offer merchants and customers a smoother checkout with real-time settlement.

Daily Cap and Bank Discretion

The enhanced limits apply only to Person-to-Merchant (P2M) transactions. Member banks retain the discretion to impose lower limits based on their individual risk policies.