UPI limit increased to Rs 10 lakh within 24 hours for these transactions

As the September 15 income tax return (ITR) filing deadline is just around the corner, NPCI (National Payments Corporation of India) has raised the per-transaction cap to Rs 5 lakh, but this is only for entities that fall under categories aligned with tax payments.

On top of that, NPCI has enhanced the per-transaction limit and aggregate transaction limit for 24 hours for 12 other categories as well. These changes will kick in on September 15, 2025. According to the circular, all issuing banks must make sure that these 24-hour cumulative limits, or the total transaction limit for 24 hours, “are kept at their end”.

That said, while NPCI has set these overall transaction ceilings, it has given member banks the flexibility to set their internal limits according to their specific policies.

These limits will only apply to P2M (Person to Merchant) transactions with verified merchants. According to NPCI, the P2P (Person to Person) transaction limits will remain unchanged at Rs 1 lakh per day.

As per the circular, all banks, apps and PSPs (Payment Service Providers) must implement these enhanced limits into effect by September 15, 2025.

Which transactions will have the UPI limit of Rs 10 lakh?

NPCI has raised the transaction limits, both per-transaction and the aggregate transaction for 24 hours, specifically for capital markets and insurance. Before this, if someone wanted to invest in the stock market or pay their insurance premiums, they could pay up to Rs 2 lakh per transaction.

Starting September 15, you can pay up to Rs 5 lakh per transaction to verified merchants for capital markets or insurance, and you can also make payments totalling up to Rs 10 lakh within a 24-hour window. Note that the per-transaction limit for placing an IPO bid via UPI stays the same at Rs 5 lakh and does not fall under the enhanced limit ambit of capital market-related transactions.

According to a 2020 NPCI circular, transactions made under the capital market category include those made to AMCs, broking houses, mutual funds, and similar entities.

Similarly, the limits for the government e-Market Place (EMD Payments), or merchant category code (MCC) 9311, which pertains to tax payments, have also been enhanced to Rs 5 lakh per transaction. A person can now make transactions totalling Rs 10 lakh within 24 hours, with verified merchants in this category.

The per-transaction limit for credit card payments has also seen a big increase from Rs 2 lakh to Rs 5 lakh, and the 24-hour limit has been bumped out to Rs 6 lakh.

Source: NPCI

Even collections, which cover loan repayment-related transactions, B2B collections, EMI collections, and more, have seen their per-transaction limits increased from Rs 2 lakh to Rs 5 lakh. Additionally, the total transaction limit for 24 hours in this category has been raised to Rs 10 lakh.

Explains Rohit Mahajan, Founder and Managing Partner of plutos ONE, “This higher limit for verified merchants also protects the user community, and allows for the seamless and secure processing of larger volume transactions for businesses and institutions.”

“Raising value limits with the UPI will directly free consumer value and enable high-value transactions to be easier, cheaper, faster and frictionless digital payments. This creates easier access to bill payments for larger volumes, removes the friction of splitting larger transactions, and allows the user greater flexibility”, he adds.

Which other new categories have been included for higher-value transactions?

From September 15, 2025, users accessing FX-Retail via BBPS (Bharat Bharat Bill Payment System) will also see their per-transaction limit and their cumulative 24-hour limit enhanced to Rs 5 lakh.

The platform provides access to real-time forex rates and also allows customers to buy and sell foreign exchange for outward remittances, load forex cards and get physical delivery of foreign currency notes.

Also, per-transaction and aggregate transaction limits per 24-hour period for term deposits and initial funding for digital account openings, or financial accounts that are opened entirely and exclusively online or via a mobile app, have been increased. Remember, a digital account does not require you to visit a bank branch in person to finish any account opening formalities. Almost all major banks today offer this facility.

Currently, this cap is set at Rs 5 lakh (both per transaction and cumulative limits) for term deposits made through digital accounts. For opening digital accounts, the initial funding limit is Rs 2 lakh. Keep in mind that this Rs 2 lakh limit applies to each transaction and also serves as the total limit for all transactions within a 24-hour timeframe for this type of transaction.

Adds Siddharth Mehta, Co-founder of Kiwi, “It is a positive step by NPCI to extend higher UPI limits to more categories of transactions, as it could expedite financial activities such as funding digital account opening, account opening for term deposits, insurance, and credit card bill payments using UPI through instant real-time transfers. With the higher limits, high payment transactions can now be made with a single transaction on the go, anytime and anywhere. As the higher limit is only for verified merchants, it adds another layer of safety and builds trust among individuals while securely executing high-value transactions”.