UPI transaction limit revised: Here’s how merchant payments for jewellery, bank deposits and insurance will change

The National Payments Corporation of India (NPCI) has announced a major revision of the Unified Payments Interface (UPI) limit for Person-to-Merchant (P2M) transactions, effective September 15. The new UPI rules are designed to make high-value digital payments easier and more secure for Indian users.

With this change, users can now make UPI merchant transactions of up to Rs 10 lakh in a single day for selected verified categories. However, the UPI limit for Person-to-Person (P2P) transfers remains unchanged at Rs 1 lakh per day.

UPI limit raised for capital markets, insurance and government services

For capital market and insurance investments, the UPI transaction limit has been raised from Rs 2 lakh to Rs 5 lakh per payment, with a maximum of Rs 10 lakh per day.

On the Government e-Marketplace (GeM portal), which includes tax payments and earnest money deposits, the UPI limit has increased from Rs 1 lakh to Rs 5 lakh per transaction.

Travel, credit card bills and loan repayments

The travel sector now enjoys a higher UPI transaction cap, rising from Rs 1 lakh to Rs 5 lakh, with a daily limit of Rs 10 lakh. Credit card bill payments via UPI can now be made up to Rs 5 lakh per transaction, with a daily cap of Rs 6 lakh.

For loan repayments and EMI collections, the UPI payment limit has been revised to Rs 5 lakh per transaction and Rs 10 lakh per day.

Jewellery purchases and banking services

The UPI limit for jewellery purchases has doubled from Rs 1 lakh to Rs 2 lakh per transaction, with a daily cap of Rs 6 lakh. Banking services such as term deposits through digital onboarding also benefit, with UPI limits raised to Rs 5 lakh per transaction and per day, up from Rs 2 lakh earlier.

Digital payments in India get a boost

NPCI said the revised UPI limits will help users make large digital transactions smoothly across key sectors. The move is expected to strengthen the role of UPI in high-value digital payments and encourage wider adoption of cashless payments in India.