UPI Limits Skyrocket to ₹10 Lakh! How to Use the New Rules from September 15 for Big-Ticket Payments
The world of digital payments in India is about to undergo a monumental shift. In a move that reflects the incredible growth and trust in the Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has announced a massive increase in transaction limits for specific categories, set to take effect on September 15, 2025. For millions of Indians who rely on UPI for everything from daily groceries to significant investments, this change unlocks a new level of convenience and flexibility. The headline news is the introduction of a ₹10 lakh daily aggregate limit for several high-value transaction types, with per-transaction limits also seeing a substantial hike to ₹5 lakh.
This isn’t just an incremental update; it’s a game-changer. It signals UPI’s evolution from a platform for small, person-to-person (P2P) transfers to a robust system capable of handling serious financial commitments. The move is a direct response to market demand for higher limits and aims to further cement UPI’s position as the backbone of India’s digital economy.
What Exactly is Changing? The New UPI Limits Explained
The core of this update lies in the distinction between P2P (Person-to-Person) and P2M (Person-to-Merchant) transactions. While the standard P2P limit remains at ₹1 lakh per day, the NPCI has introduced significantly higher ceilings for verified P2M payments across several key categories.
Effective September 15, 2025, the following changes will be implemented :
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Capital Markets & Insurance: This is perhaps the most significant change for investors and policyholders. The per-transaction limit for payments to mutual funds, brokerage houses, and insurance companies is being increased from ₹2 lakh to ₹5 lakh. Furthermore, the total amount you can transact in this category within a 24-hour window has been set to ₹10 lakh. This means you can now easily fund your trading account, purchase new mutual fund units, or pay large insurance premiums without splitting payments or resorting to slower methods like NEFT/RTGS.
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Credit Card Bill Payments: Paying off high credit card bills is also getting easier. The per-transaction limit for credit card payments has been raised to ₹5 lakh, with a 24-hour aggregate limit of ₹6 lakh. This is a welcome relief for those who make large purchases and need a quick, seamless way to settle their dues.
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Collections & Loan Repayments: The “Collections” category, which includes EMI payments and other loan repayments, will now have a per-transaction limit of ₹5 lakh and a daily aggregate limit of ₹10 lakh. This simplifies the process of managing loan obligations digitally.
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Tax Payments & Government Services: Payments made under the Government e-Market Place (GeM) and for tax purposes will also benefit from the enhanced limit of ₹5 lakh per transaction and ₹10 lakh per day. This aligns with the government’s push for digital tax filing and payments, especially with tax deadlines often falling around this time of year.
It’s crucial to note that these enhanced limits apply specifically to transactions with verified merchants. The NPCI has empowered individual banks to set their own internal limits within these ceilings based on their risk assessment policies, but all banks and payment service providers (PSPs) are required to implement these new maximums by the September 15 deadline.
The Driving Force: UPI’s Unstoppable Growth
To understand the “why” behind this decision, one only needs to look at UPI’s staggering growth trajectory. From just 92 crore transactions in the 2017-18 fiscal year, UPI volumes have exploded to 18,587 crore in FY 2024-25. This represents a compound annual growth rate (CAGR) of a breathtaking 114%. The value of these transactions surged from ₹1.10 lakh crore to ₹261 lakh crore in the same period.
This explosive adoption shows that UPI is no longer just a convenience; it’s a critical piece of India’s financial infrastructure. The government and the Reserve Bank of India (RBI) have actively fostered this ecosystem through continuous reforms aimed at strengthening credit discipline, responsible lending, and technological adoption. Increasing the transaction limits is a logical next step in this evolution, enabling UPI to cater to an even broader range of economic activities.
Impact on Consumers and Businesses
For the average user, this update means greater freedom and less friction. The need to split large payments will be eliminated for many common use cases, making digital transactions for significant life events—like making a down payment, investing a lump sum, or paying for education—much simpler.
For businesses and merchants, this is a massive boon. It allows them to seamlessly process higher-value transactions, improving cash flow and operational efficiency. As one industry expert noted, raising the value limits directly frees up consumer value and enables high-value transactions to be “easier, cheaper, faster and frictionless”. This fosters greater trust in the digital payment ecosystem and encourages more businesses to integrate UPI as a primary payment method.
As we count down to September 15, the message from the NPCI and RBI is clear: UPI is ready to handle more, and India’s digital payment journey is just getting started. This is a pivotal moment for financial inclusion and a testament to the power of homegrown technology in transforming an entire economy.