Great news for digital payment users! The National Payments Corporation of India (NPCI) has announced a massive increase in UPI transaction limits, effective September 15, 2025. Users can now make payments of up to ₹5 lakh per transaction in select categories, while the cumulative daily limit has been revised to as high as ₹10 lakh in some cases.
This game-changing update makes high-value transactions smoother than ever, especially for insurance premiums, capital market investments, tax payments, and other essential financial services. Say goodbye to the hassle of multiple transactions or bank visits for large payments!
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What’s Changed: The New UPI Limits Breakdown
NPCI has increased the transaction limit to ₹10 lakh within 24 hours for categories like insurance premiums & capital markets, making big payments easier and faster than ever. Here’s everything you need to know about the updated limits:
Previous Standard Limits:
- Per transaction: ₹1 lakh
- Daily limit: ₹1 lakh
- Maximum transactions per day: 20
New Enhanced Limits (Effective September 15, 2025):
| Category | Per Transaction Limit | Daily Limit |
|---|---|---|
| Capital Markets & Investments | ₹5 lakh | ₹10 lakh |
| Insurance Premium Payments | ₹5 lakh | ₹10 lakh |
| Government e-Marketplace | ₹5 lakh | ₹10 lakh |
| Travel Bookings | ₹5 lakh | ₹10 lakh |
| Tax Payments | ₹5 lakh | ₹10 lakh |
| Educational Institutions | ₹5 lakh | ₹10 lakh |
| Healthcare Services | ₹5 lakh | ₹10 lakh |
Why This UPI Limit Increase Matters
This significant enhancement addresses real-world payment needs where traditional UPI limits often fell short. From September 15, 2025, users will be able to transfer up to ₹10 lakh in a 24-hour window for specific categories like tax payments, insurance premiums, EMIs, and capital market investments.
The move particularly benefits:
Individual Users: Making large insurance premium payments, mutual fund investments, or tax payments without multiple transactions Business Owners: Streamlined B2B payments for supplies, services, and government marketplace transactions Healthcare Sector: Easier payment processing for expensive medical procedures and treatments Educational Institutions: Simplified fee collection for higher education and professional courses.
How the Enhanced UPI System Works
Developed by NPCI and regulated by the Reserve Bank of India (RBI), UPI operates on the IMPS infrastructure, ensuring security and reliability for these higher-value transactions. The system maintains all existing security protocols while accommodating larger payment amounts.
For digital payment trends in India, this represents a major milestone in making high-value transactions as convenient as small payments.
Implementation Timeline & Bank Readiness
As per NPCI’s directions, all banks, applications (apps), and Payment Service Providers (PSPs) must implement these changes by September 15, 2025. Most major banks and UPI apps like PhonePe, Google Pay, Paytm, and BHIM are already preparing for the rollout.
Important Note: Individual banks may still maintain their own lower limits within these new maximum thresholds, so check with your specific bank for exact limits on your account.
Security Measures for Higher Transactions
With increased limits comes enhanced responsibility. NPCI and banks are implementing additional security measures:
- Enhanced Authentication: Multi-factor authentication for high-value transactions
- Real-time Monitoring: Advanced fraud detection systems
- Transaction Alerts: Immediate SMS and app notifications
- Daily Limits: Automatic reset every 24 hours to prevent misuse
Who Benefits Most from This Change
The updated limits particularly advantage:
- Investors: Direct mutual fund investments, SIP payments, and stock market transactions
- Insurance Buyers: Annual premium payments for life, health, and property insurance
- Taxpayers: Easy advance tax and GST payments without bank visits
- Students: Simplified fee payments for education and professional courses
- Healthcare Users: Medical expense payments for treatments and procedures
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Frequently Asked Questions
Q: Will the new ₹10 lakh UPI limit apply to all transactions or only specific categories?
A: The ₹10 lakh daily limit applies only to specific categories like insurance premiums, capital markets, tax payments, travel bookings, government e-marketplace, educational institutions, and healthcare services. Regular person-to-person (P2P) payments and merchant transactions still maintain the standard ₹1 lakh per transaction and daily limits. The enhanced limits are designed for specific high-value payment categories where larger amounts are commonly required.
Q: Do I need to update my UPI app or do anything special to access these higher limits?
A: No special action is required from users. The enhanced limits will be automatically available from September 15, 2025, across all UPI-enabled apps like PhonePe, Google Pay, Paytm, and BHIM. However, your individual bank may have its own limits within these maximum thresholds, so you might want to check with your bank about your specific account limits. The feature will work seamlessly with your existing UPI setup for eligible transaction categories.
