UPI Increases Daily P2M Limit to ₹10 Lakh

In a major move to support high-value digital transactions, the National Payments Corporation of India (NPCI) has revised the Unified Payments Interface (UPI) limits for Person-to-Merchant (P2M) payments. The revision, effective from 15 September 2025, aims to ease large transactions in sectors like insurance, investments, and government marketplaces. This update is seen as a step towards enhancing India’s growing digital payment ecosystem and reducing dependence on traditional banking methods for high-value payments.

UPI Limit Hike: What Has Changed?

New Daily and Transaction Caps

NPCI’s circular now allows UPI users to perform larger payments to merchants in specified sectors, under controlled conditions.

Revised Limits Include,

  • ₹5 lakh per transaction for P2M payments
  • ₹10 lakh daily cap across all P2M transactions
  • Applies only to verified merchants
  • No change in Person-to-Person (P2P) daily limit, which remains ₹1 lakh

Sectors Eligible for Higher Limits

The updated UPI limit is applicable only in select categories that often involve larger transactions. This ensures smoother, faster payments in these domains without the need to use alternate banking methods.

Sectors covered,

  • Insurance Premium Payments
  • Capital Market Investments (e.g., mutual funds, equities)
  • Travel and Tourism Services
  • Loan Collections and EMI Payments
  • Government e-Marketplace (GeM) transactions

Benefits of the Limit Enhancement

Boosts Digital Transactions

Raising the UPI limits allows users to conduct large-scale payments digitally without splitting them into multiple transactions or resorting to other slower channels like RTGS or NEFT.

Encourages Formal Economy

High-value payments through UPI increase transaction transparency, aiding financial reporting and compliance.

Convenience for Users and Merchants

  • One-time payments for services like travel or insurance
  • Faster fund settlement for merchants
  • Streamlined payment process across platforms

Static Facts and Key Information

  • Announced by: National Payments Corporation of India (NPCI)
  • Effective Date: 15 September 2025
  • New P2M Per-Transaction Limit: ₹5 lakh
  • New P2M Daily Aggregate Limit: ₹10 lakh
  • Applies to: Verified merchants only
Shivam

As a Content Executive Writer at Adda247, I am dedicated to helping students stay ahead in their competitive exam preparation by providing clear, engaging, and insightful coverage of both major and minor current affairs. With a keen focus on trends and developments that can be crucial for exams, researches and presents daily news in a way that equips aspirants with the knowledge and confidence they need to excel. Through well-crafted content, Its my duty to ensures that learners remain informed, prepared, and ready to tackle any current affairs-related questions in their exams.

Recent Posts

RBI Launches ”Awareness Program on Digital Payments” to Promote Safe Digital Payments

Digital payments have become an important part of everyday life in India. From shopping to…

8 mins ago

Pi Day 2026: Why 14 March is Celebrated as Pi Day

Pi Day is celebrated every year on 14 March to honor the mathematical constant π…

22 mins ago

Homebound Becomes Only Indian Film Shortlisted for Best International Feature Film at Oscars 2026

Indian cinema has once again gained global recognition as Neeraj Ghaywan’s film Homebound has been…

34 mins ago

U.S. and South Korea Kick Off Massive Joint Military Exercise ‘Freedom Shield’

The United States and South Korea have started their annual Freedom Shield joint military exercise.…

34 mins ago

List of Indian Academy Award Winners and Nominees

The Academy Awards, popularly known as the Oscars, are the most prestigious awards in the…

50 mins ago

HDFC ERGO General Insurance Appoints Parthanil Ghosh as New Managing Director and CEO

In a major leadership update in India’s insurance sector, HDFC ERGO General Insurance has announced…

1 hour ago