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