New UPI Rules 2025: Transaction Limit Increased to ₹5 Lakh from September 15 - Full List of Categories

The National Payments Corporation of India (NPCI) has announced a significant change for Unified Payments Interface (UPI) users. Starting 15 September 2025, the per-transaction limit for several categories will be increased to ₹5 lakh, giving users more flexibility for high-value digital payments .

Why the Change?

UPI has rapidly evolved as India’s most trusted payment mode, used for everything from utility bills to high-value investments. Responding to rising demand, NPCI has revised its guidelines to accommodate larger transactions, ensuring smoother experiences for both individuals and businesses.

Who Will Benefit?

The revised transaction limits will be available to ‘Verified Merchants’. Banks and payment service providers (PSPs) must ensure compliance with NPCI’s updated rules before the effective date. However, peer-to-peer (P2P) transactions will continue under the existing limits.

New UPI Transaction Limits from 15 September 2025

Here’s the updated category-wise breakdown of UPI limits:

• Capital Market – Increased from ₹5 lakh to ₹10 lakh
• Insurance Payments – Increased from ₹5 lakh to ₹10 lakh
• Government e-Marketplace (EMD Payments) – Increased from ₹5 lakh to ₹10 lakh
• Travel Bookings – Increased from ₹5 lakh to ₹10 lakh
• Credit Card Bill Payments – Increased from ₹5 lakh to ₹6 lakh
• Collections – Increased from ₹5 lakh to ₹10 lakh
• Business/Merchant Transactions (including pre-approved payments) – Revised to ₹5 lakh
• Jewellery Purchases – Increased from ₹2 lakh to ₹6 lakh
• FX Retail via BBPS Platform – Revised to ₹5 lakh
• Digital Account Opening for Term Deposits – Revised to ₹5 lakh
• Digital Account Opening – Initial Funding – Capped at ₹2 lakh

Bank Discretion Still Applicable

While NPCI has enhanced the ceiling, member banks retain the right to set their own internal transaction limits in line with their policies. This ensures flexibility and risk management while keeping customer interests intact.

What It Means for UPI Users

• Investors can now make higher-value transactions in the stock market.
• Policyholders benefit from easier high-value insurance premium payments.
• Frequent travellers can book tickets and packages with ease.
• Shoppers, especially those buying jewellery or making large retail purchases, gain higher payment flexibility.

With these changes, UPI is set to strengthen its role as a one-stop solution for both everyday and high-value digital payments. The increased limits reflect India’s shift towards a cashless economy, empowering users and businesses alike.