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| UPI Goes Big: Pay for Jewellery, Travel & Insurance Up to ₹10 Lakh |
New Delhi, September 17, 2025 – The Unified Payments Interface (UPI), India’s most popular real-time payment system, has taken another major leap forward. The National Payments Corporation of India (NPCI) has announced that UPI users can now make payments up to ₹10 lakh per day across several merchant categories. This significant move is expected to benefit people making high-value payments such as insurance premiums, investment transactions, and credit card bills.
Until now, the maximum daily limit for merchant transactions on UPI was ₹2 lakh in most categories, with some exceptions. The revised cap is aimed at encouraging digital transactions, easing payments for essential financial services, and supporting India’s goal of becoming a cashless economy.
WHAT’S NEW IN UPI DAILY LIMITS ?
According to the NPCI circular released on Monday, the following changes have been made to UPI limits :
| Category | Previous Limit | New Limit |
|---|---|---|
| Capital Market (Investments) | ₹5 lakh | ₹10 lakh |
| Insurance Premium Payments | ₹5 lakh | ₹10 lakh |
| Government Payments | ₹5 lakh | ₹10 lakh |
| E-Marketplace Purchases | ₹5 lakh | ₹10 lakh |
| Travel Bookings | ₹5 lakh | ₹10 lakh |
| Credit Card Payments | ₹5 lakh | ₹6 lakh |
| Collections & Donations | ₹5 lakh | ₹10 lakh |
| Jewellery Purchases | ₹5 lakh | ₹10 lakh |
| Merchant Transactions (general) | ₹5 lakh | ₹10 lakh |
| Demat Account Opening | ₹5 lakh | ₹6 lakh |
Note : The limit for person-to-person (P2P) transfers
remains unchanged at ₹1 lakh per day.
These changes are effective from 15 September 2025, providing greater flexibility to individuals and businesses for high-value transactions.
WHY THIS UPDATE MATTERS
The increase in UPI daily limits is not just a technical
update; it is a step toward strengthening India’s digital payment ecosystem.
Here’s why it matters:
Insurance Payments Simplified : Customers can now pay
large annual or quarterly premiums for life, health, and general insurance
policies via UPI without splitting payments or switching to net banking.
Boost for Investment Transactions : Investors dealing
in mutual funds, stock markets, or other capital market instruments can
seamlessly transfer higher amounts for lump-sum investments.
Credit Card Bill Payments : With the new ₹6 lakh
limit for credit card payments, cardholders can clear substantial outstanding
amounts directly through UPI.
Convenience for High-Value Purchases : From jewellery shopping to travel bookings and government services, people can complete bigger transactions instantly.
UPI GROWTH : A SNAPSHOT
UPI continues to dominate India’s digital payment landscape. Here’s how its transaction volume has evolved in recent months :
| Month (2025) | No. of Transactions (Crore) | Transaction Value (₹ Lakh Crore) |
|---|---|---|
| August | 2,000 | 24.85 |
| July | 1,946 | 25.08 |
| June | 1,893 | 24.03 |
| May | 1,867 | 25.14 |
| April | 1,789 | 23.94 |
| March | 1,830 | 24.77 |
With over 2,000 crore transactions in August 2025, UPI remains the backbone of India’s retail payment system.
EXPERT REACTIONS
Industry experts have welcomed this development, saying it
will accelerate digital adoption in sectors like insurance, investments, and
travel.
“By allowing payments up to ₹10 lakh per day in key merchant
categories, NPCI has addressed the growing need for high-value digital
payments. This will make UPI an even stronger alternative to traditional
payment methods like cheques and NEFT,” said a leading fintech analyst.
Banks and payment service providers are also expected to
benefit as they handle increased transaction volumes while offering customers
enhanced convenience.
BENEFITS FOR BUSINESSES AND CONSUMERS
The revised UPI payment limits offer multiple advantages :
Time-Saving : Large transactions can be completed in
one go, eliminating the need for multiple payments.
Low Cost : UPI transactions are usually free or
attract minimal charges compared to other payment channels.
Faster Settlements : Merchants and service providers
receive payments instantly, improving cash flow.
Enhanced Security : UPI transactions are backed by
robust security measures such as two-factor authentication and real-time
verification.
KEY CONSIDERATIONS
While the higher limits are a welcome change, users should
keep the following in mind :
The limits apply only to person-to-merchant (P2M)
transactions, not to transfers between individuals.
Banks may have their own per-transaction caps or approval
processes for very large amounts.
Always double-check merchant details before sending
high-value payments to avoid fraud.
THE ROAD AHEAD FOR UPI
UPI’s success story is a testament to India’s digital
revolution. With over 500 million users and growing, the platform continues to
evolve. NPCI is also working on expanding UPI’s reach to international markets,
enabling cross-border payments.
By increasing the daily payment limit to ₹10 lakh, UPI is
poised to capture even larger segments of retail and financial payments. From
paying for insurance policies to booking expensive holidays, the scope of UPI
transactions is set to widen.
SUMMARY
The UPI daily limit hike to ₹10 lakh marks a significant
milestone for India’s payment ecosystem. Whether it’s paying a hefty insurance
premium, investing in mutual funds, or clearing a high-value credit card bill,
users now have the freedom to make big-ticket payments quickly and securely.
As digital transactions continue to grow, UPI remains the preferred choice for millions. This move by NPCI not only makes payments more convenient but also aligns with the government’s vision of a robust, inclusive, and cashless economy.
FREQUENTLY ASKED QUESTIONS ( FAQS )
1. WHAT IS THE NEW UPI DAILY LIMIT FOR PAYMENTS ?
The National Payments Corporation of India (NPCI) has raised
the daily UPI limit for person-to-merchant (P2M) transactions in several
categories from ₹2–5 lakh to as high as ₹10 lakh. This applies to payments like
insurance premiums, investments, government services, and more.
2. DOES THE NEW LIMIT APPLY TO PERSON-TO-PERSON (P2P)
TRANSFERS ?
No. The limit for P2P transactions remains unchanged at ₹1
lakh per day, except for some special cases like IPO subscriptions or salary
disbursements, where higher limits may be set by banks.
3. WHICH CATEGORIES BENEFIT MOST FROM THE INCREASED UPI
LIMIT ?
- The update is especially useful for :
- Insurance premium payments (up to ₹10 lakh)
- Capital market and investment transactions (₹10 lakh)
- Credit card bill payments (₹6 lakh)
- High-value jewellery purchases, travel bookings, and e-marketplace payments.
4. WHEN DID THE REVISED UPI PAYMENT LIMITS COME INTO
EFFECT ?
The new UPI limits became effective on 15 September 2025, as
per NPCI’s latest circular.
5. ARE THERE ANY PRECAUTIONS TO TAKE WHILE MAKING
HIGH-VALUE UPI PAYMENTS?
- Yes. Always :
- Verify the recipient’s details carefully before sending large amounts.
- Use a trusted UPI app and ensure your phone is protected with a PIN or biometric lock.
- Check if your bank imposes additional per-transaction caps for big payments.
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