UPI Transaction Limit Increased

The National Payments Corporation of India (NPCI) has recently announced a significant update: the UPI Transaction Limit has increased, effective from September 15, 2025. This change is aimed at promoting high-value UPI transactions and supporting seamless digital payments across India.

SSC aspirants should note this update as it is relevant for current affairs, banking awareness, and digital finance-related exam questions.

Key Highlights of the UPI Transaction Limit Increased

From September 15, 2025, the UPI per transaction limit of ₹5 lakh from Sept 2025 will be applicable for high-value payment categories. In addition, the 24-hour cumulative limit has been raised to ₹10 lakh for selected services. These changes are especially relevant for Person to Merchant (P2M) transactions via verified merchants.

Revised UPI limits under the NPCI directive:

This is a clear indication of NPCI’s focus on high-value UPI payments and demonstrates why the UPI Transaction Limit Increase is an important development for India’s digital financial ecosystem.

Who Will Benefit from the UPI Transaction Limit Increase

The UPI Transaction Limit Increase will primarily benefit:

• Investors transacting in mutual funds, stocks, and AMCs (Capital Markets)

• Policyholders making high-value insurance premium payments

• Taxpayers handling EMD or GST payments on the Government e-Marketplace

• Credit card users settling large bills via UPI high-value payments

• Loan borrowers and businesses managing bulk EMI or collection payments

• Frequent travelers booking high-value trips

• Jewellery buyers opting for cashless transactions

• Forex users and digital account openers requiring smooth onboarding and funding

Scope and Limitations of the UPI Transaction Limit Increased

While the UPI Transaction Limit Increased, SSC aspirants should keep in mind:

• The new limits apply only to P2M transactions with verified merchants.

• Person-to-Person (P2P) UPI limit remains ₹1 lakh/day.

• Banks and PSPs must implement the UPI Transaction Limit Increased by September 15, 2025, though some internal limits may be lower depending on risk policies.

Key Questions SSC Aspirants Should Know

1. What is the new UPI limit effective Sept 15, 2025?

   • The UPI Transaction Limit Increased to a per-transaction limit of ₹5 lakh and a 24-hour cumulative limit of ₹10 lakh.

2. Which categories have increased UPI limits?

   • Capital Markets, Insurance, Govt. e-Marketplace, Credit Cards, Loan/EMI Collections, Travel Bookings, Jewellery Purchases, FX Retail, Term Deposits, and Digital Account Opening.

3. How much can I pay via UPI now?

   • Depending on the category, the per-transaction limit ranges from ₹2 lakh to ₹5 lakh, with a daily cumulative limit of up to ₹10 lakh.

4. UPI limit for credit card payment is ₹5 lakh?

   • Yes, the UPI Transaction Limit Increased allows credit card payments up to ₹5 lakh per transaction, with a daily cap of ₹6 lakh.

5. Difference between the old and new UPI limits for 2025?

   • The per-transaction limit increased from ₹1–2 lakh to ₹2–5 lakh, and the 24-hour cumulative limit was raised to ₹2–10 lakh depending on the category.

About UPI

Unified Payments Interface (UPI), launched by NPCI in 2016, is India’s leading real-time payment system. It allows instant transfers between bank accounts via mobile using a Virtual Payment Address (VPA), eliminating the need to share sensitive bank details.

The recent UPI Transaction Limit Increase is a major step toward digital financial inclusion, reducing cash dependency, and promoting high-value UPI transactions across sectors.

Final Thoughts

The UPI Transaction Limit Increased marks a major milestone in India’s digital payments journey. With a per-transaction limit of ₹5 lakh and a 24-hour cumulative cap of ₹10 lakh, it enables high-value UPI transactions across sectors like insurance, capital markets, government tax payments, and credit card settlements. This move will make large digital payments seamless and secure, reducing dependence on cash.

By expanding P2M transaction limits, NPCI has strengthened the role of UPI in the financial ecosystem, allowing businesses and individuals to transact more efficiently. However, the P2P UPI limit remains ₹1 lakh/day, ensuring safety in person-to-person transfers.

For anyone making large payments, this update provides convenience, speed, and security, further cementing UPI as a preferred payment method in India.