New Delhi — In a major move to facilitate high-value digital payments, the National Payments Corporation of India (NPCI) has increased the Unified Payments Interface (UPI) transaction cap to ₹5 lakh per transaction for certain select categories, effective 15 September 2025. The revision is intended to enable smoother, more convenient large-value transfers, particularly for sectors like insurance, capital markets, and travel.
Under the new rules, users making payments to verified merchants in key categories will now be able to transact up to ₹5 lakh per transaction. Previously, many payments outside essential services had lower ceilings. In sectors including insurance premiums, stock and mutual fund investments, travel bookings, credit card bill payments and government marketplace purchases, this higher limit is now applicable.
Additionally, several of these categories also benefit from a raised daily aggregate limit. For example, for capital markets and insurance, the daily cap has been set at ₹10 lakh.
However, it’s not a universal change. Peer-to-Peer (P2P) transfers between individuals remain under the existing lower limit, which continues to be around ₹1 lakh per day. Also, not all merchants and transactions qualify: only those classified under the specified categories and with verified merchant status will be able to access the enhanced limits. Banks or payment service providers may enforce stricter limits based on their risk policies.
The upgrade reflects NPCI’s push to expand UPI’s role beyond everyday small payments into larger financial transactions, reducing dependency on older payment methods like paper cheques or bank transfers. Experts believe this will improve user convenience and promote the adoption of digital payments for larger expenses.
Users are being advised to verify that the merchant is compliant and their bank supports the increased limit before attempting a high-value UPI transaction under the new regime.