Big Boost for Digital Payments; NPCI Raises UPI Limits from September 15
New Delhi, 10th September 2025: Making big-ticket digital payments is about to get easier. The National Payments Corporation of India (NPCI) has announced revised Unified Payments Interface (UPI) transaction limits, effective September 15, 2025, opening the door for smoother, higher-value digital transactions on platforms like Google Pay, PhonePe, and Paytm.
The new limits focus largely on Person-to-Merchant (P2M) transactions – the kind you make while paying insurance premiums, loan EMIs, investments, travel bookings, or even credit card bills. Meanwhile, the Person-to-Person (P2P) transfer cap remains unchanged at ₹1 lakh per day.
Capital Market & Insurance: Raised from ₹2 lakh → ₹5 lakh per transaction (daily up to ₹10 lakh).
Government Payments & Taxes: Increased from ₹1 lakh → ₹5 lakh.
Travel Bookings: Now up to ₹5 lakh per booking (daily up to ₹10 lakh).
Credit Card Bills: Up to ₹5 lakh per transaction; daily max ₹6 lakh.
Loan Repayments/EMIs: Increased to ₹5 lakh per transaction; daily max ₹10 lakh.
Jewellery Purchases: Doubled from ₹1 lakh → ₹2 lakh.
Term Deposits: ₹2 lakh → ₹5 lakh.
Foreign Exchange (via BBPS): Soon up to ₹5 lakh per transaction.
With higher ceilings, paying for a holiday abroad, a high-value insurance policy, or a large EMI can now be done seamlessly through UPI. The move reduces dependence on cheques and cash, strengthens trust in digital payments, and aligns with India’s growing cashless economy.
Industry experts say this will especially benefit travel, finance, jewellery, and insurance sectors, while offering everyday users more flexibility in handling big transactions digitally.
