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NPCI raises UPI transaction limit to ₹5 lakh for high-value payments from Sept 15

Capital markets, insurance, tax, travel, and loan repayments now settle via UPI without splitting. Banks and fintech apps have until mid-September to implement the change.

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Finsamudra Desk

5 Sept 2025, 1:14 am IST · 1 min read

₹2L → ₹5L per transactionCapital markets & insurance limit increase₹10LDaily aggregate cap across expanded categoriesSept 15, 2025Effective date
#️⃣ NPCI Raises UPI Transaction Limit to ₹5 Lakh for High-Value Payments
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Starting September 15, 2025, the National Payments Corporation of India (NPCI) will allow UPI users to process transactions up to ₹5 lakh in select merchant categories. This removes the friction of splitting large payments across multiple transactions—a common workaround under the old ₹1 lakh limit.

The expanded limits apply to four core categories: capital markets and insurance (₹2 lakh → ₹5 lakh per transaction); tax, travel, and Government e-Marketplace (GeM) payments (₹5 lakh per transaction); and loan repayments, EMIs, and B2B settlements (₹5 lakh per transaction). Each category carries a daily aggregate cap of ₹10 lakh. Retail UPI payments and other merchant types remain capped at ₹1 lakh per transaction.

IPO payments, which were already at ₹5 lakh, face no change. The tiered approach reflects NPCI's strategy of maintaining security for everyday payments while opening the channel for institutional and high-trust flows.

Banks, payment apps, and UPI service providers must have systems ready by September 15. The deadline is tight but fixed—preparation cycles begin now.

This reform signals RBI and NPCI's intent to consolidate UPI as the backbone for India's entire digital transaction stack, not just retail. High-value digital settlement reduces reliance on cheques, RTGS, and NEFT for many use cases, lowering cost and friction across the financial system.

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