The National Payments Corporation of India (NPCI) has announced a major update for Unified Payments Interface (UPI) users. Starting September 15, 2025, the transaction limit has been significantly raised for select payments such as taxes, insurance premiums, loan EMIs, investments, and credit card bills.

Until now, UPI payments were capped at ₹1 lakh per day, but the new rules allow transactions of up to ₹10 lakh in 24 hours for specific categories.

Why Did NPCI Increase the Limit?

The timing of this update is crucial, as September 15 is the last date for tax payments in India. To ease high-value digital transactions, NPCI has revised the cap:

• Tax-related payments (MCC 9311): Now ₹5 lakh per transaction and up to ₹10 lakh in a day.

• The move is expected to benefit taxpayers, businesses, and professionals who often face restrictions due to earlier limits.

Where Will the New Limit Apply?

The revised cap will only apply to P2M (Person-to-Merchant) transactions, meaning payments to verified merchants such as:

• Insurance companies

• Stock brokers

• Tax portals

• Banks

• Loan repayment platforms

Meanwhile, P2P (Person-to-Person) transfers will still have the ₹1 lakh per day limit.

New UPI Transaction Limits by Category

Here’s a quick breakdown of updated limits:

• Tax Payments (MCC 9311): ₹5 lakh per transaction, ₹10 lakh daily cap.

• Insurance & Capital Markets: Earlier ₹2 lakh, now ₹5 lakh per transaction and ₹10 lakh per day.

• Loan EMI & B2B Collections: ₹5 lakh per transaction, ₹10 lakh daily.

• Credit Card Bill Payments: Increased from ₹2 lakh to ₹5 lakh per transaction, with a daily cap of ₹6 lakh.

• Foreign Exchange (FX Retail): ₹5 lakh per transaction limit.

• Digital Accounts & Fixed Deposits: Up to ₹5 lakh allowed per transaction.

• IPO Applications via UPI: Limit remains unchanged at ₹5 lakh per application.

Will All Banks Implement It Immediately?

NPCI has directed all banks, UPI apps, and payment service providers (PSPs) to adopt the new limits. However, banks may set their own internal caps depending on risk and policy frameworks. Some banks may take time to roll out the update, but most are expected to enable it from September 15 onwards.

Who Will Benefit From the Change?

The revised UPI transaction cap is expected to help:

• Taxpayers making large-value payments.

• Business owners and professionals who pay insurance premiums, loan EMIs, or invest in stock markets.

• Everyday consumers who pay credit card bills, open digital FDs, or transact in foreign exchange.

With this reform, UPI continues to evolve as a trusted alternative to net banking and card payments for high-value transactions.