New Delhi: The National Payments Corporation of India (NPCI) has raised the UPI transaction limit to Rs 5 lakh for select categories linked to tax payments, starting September 15, 2025. This update will allow verified merchants in these categories to handle bigger payments seamlessly, reflecting the growing reliance on UPI as India’s go-to digital payment mode.
As per an NPCI circular dated August 28, acquiring banks must ensure that the higher transaction limits are offered only to merchants who follow NPCI guidelines. At the same time, banks have the flexibility to set their own internal limits, as long as they remain within the maximum cap fixed by NPCI.
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NPCI has extended higher UPI limits across several sectors to make large transactions smoother.
– Rs 5 lakh per transaction: Capital markets, insurance, government e-marketplace, travel bookings, credit card bill payments, collections, business/merchant transactions (including pre-approved payments), FX retail (via BPS platform), and digital account opening for term deposits. ()
– Rs 2 lakh per transaction: Jewellery purchases and digital account opening for initial funding.
On cumulative limits, categories like capital markets, insurance, travel, collections, and government e-marketplace have a cap of Rs 10 lakh, while credit card bill payments carry a Rs 6 lakh cumulative limit. ()
All UPI apps and payment service providers must update their systems and ensure they are fully compliant with the new rules by September 15, 2025.
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