Outlook Business Desk
Starting 15 September 2025, the National Payments Corporation of India (NPCI) will increase Unified Payments Interface (UPI) transaction caps. This revision enables individuals and enterprises to process higher-value payments in areas including insurance, capital markets and additional categories.
With the new guidelines, select categories linked to tax and large-value payments can now process transactions of up to ₹5 lakh each. Additionally, daily limits have been raised for many categories, going as high as ₹10 lakh in some cases.
Investors can now make capital market transactions of up to ₹5 lakh per payment, with a daily limit of ₹10 lakh. At the same time, UPI Interface will allow credit card repayments up to ₹5 lakh per transaction, capped at ₹6 lakh daily.
UPI payments for insurance premiums and travel expenses now permit transactions of up to ₹5 lakh, with a daily ceiling of ₹10 lakh.
Business collections through UPI now permit transactions of up to ₹5 lakh per payment, with no daily cap, supporting smoother merchant settlements. Jewellery transactions are also included, enabling up to ₹5 lakh per transaction and a daily cap of ₹6 lakh.
Retail foreign exchange payments through the Bharat Bill Payment System (BBPS) can go up to ₹5 lakh per transaction with an equal daily cap. For digital account opening, funding is allowed up to ₹5 lakh per transaction, limited to ₹2 lakh daily for initial funding
Meanwhile, Standard peer-to-peer (P2P) UPI transfers will continue under existing rules, capped at ₹1 lakh per transaction. These exemptions ensure that the revised higher limits focus mainly on business, institutional, and other high-value categories instead of routine personal payments.
Created by the NPCI and overseen by the Reserve Bank of India (RBI), UPI operates on Immediate Payment Service infrastructure (IMPS) for real-time transfers. The revised limits strengthen UPI’s role in high-value payments, supporting India’s digital-first economy.
Recent updates allow users to confidently process larger transactions on UPI without multiple transfers or alternate banking channels, strengthening India’s digital payments ecosystem and supporting its shift toward a digital-first economy.