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

Who is known as the Father of Mobile Phones?

Mobile Phones are a very important part of our daily life. From calling and messaging…

1 hour ago

Mongolia Gets New Prime Minister Amid Political Turmoil: Uchral Nyam-Osor Takes Charge

Mongolian parliament has appointed the Uchral Nyam-Osor as the country' new Prime Minister. With this…

3 hours ago

E20 Petrol India 2026: Nationwide Rollout from April 1 Explained

From the April 1st fuel stations across the country are now supplying that petrol which…

3 hours ago

NCERT Gets ‘Deemed University’ Status: What It Means for India’s Education System

The Ministry of Education has granted the 'deemed to be university’ status to National Council…

4 hours ago

What Is Mission Mitra? ISRO’s New Experiment for Gaganyaan Explained

India's Gaganyaan Mission have begun the unique experiment which is called Mission Mitra in the…

4 hours ago

Which is the Highest Airport in the World?

Airports help people travel quickly from one place to another. But not all airports are…

4 hours ago