New Delhi: The National Payments Corporation of India (NPCI) has increased the UPI daily limit for person-to-merchant (P2M) payments to Rs 10 lakh, starting from Monday. This move is aimed at helping people make larger payments through UPI in sectors like insurance, loans, investments, and travel, where higher transaction amounts are often required.
The person-to-person (P2P) UPI payment limit remains unchanged at Rs 1 lakh per day.
Where Can You Use the Higher Limits?
The updated UPI rules now allow users to pay up to Rs 10 lakh per day in certain categories. For example, if you are paying for capital market investments or insurance premiums, you can now send Rs 5 lakh per transaction, with a daily total of Rs 10 lakh.
If you're booking travel tickets, paying loan EMIs, or credit card bills, the per transaction limit is now Rs 5 lakh, while credit card bill payments are capped at Rs 6 lakh per day.
For jewellery purchases, UPI payments can now be made up to Rs 2 lakh per transaction, and Rs 6 lakh in total per day. Earlier, this was limited to just Rs 1 lakh.
Government Payments and Digital Deposits Also Covered
For Government e-Marketplace (GeM) transactions such as earnest money deposits and taxes, the new per-transaction limit is now Rs 5 lakh, which was previously only Rs 1 lakh.
Similarly, for banking services like opening term deposits online, the limit has been raised from Rs 2 lakh to Rs 5 lakh per transaction and per day.
No More Splitting Payments or Using Cheques
Earlier, people often had to split large payments into multiple smaller UPI transfers or use traditional methods like cheques, NEFT, or RTGS. The new limits make large, single payments possible, saving time and effort.
Only Verified Merchants Will Get Higher Limits
It's important to note that these new UPI limits will only apply to verified merchants, ensuring safety and trust for users. NPCI has also confirmed that no extra steps are needed—eligible users will see the changes automatically.
Fintech companies welcomed the move, saying it would boost digital adoption, especially in sectors like insurance, travel, and finance, where high-value transactions are common.
