UPI Transaction Limit Raised to INR 10 Lakh Per Day for Select Payments: Details Here

The National Payments Corporation of India (NPCI) has increased the per-transaction ceiling to INR 5 lakh in anticipation of the September 15 income tax return (ITR) filing deadline, but only for firms that fit under tax payment-aligned categories. Additionally, NPCI has raised the 24-hour aggregate transaction limit and per-transaction limit for 12 additional categories. The effective date of these modifications is September 15, 2025.

The circular states that all issuing banks are required to ensure that these 24-hour cumulative restrictions, or the 24-hour total transaction limit, “are kept at their end.” Nevertheless, NPCI has allowed member banks the freedom to establish their own internal limits in accordance with their own regulations, even if it has set these overall transaction ceilings. Only P2M (person to merchant) transactions with approved merchants will be subject to these restrictions.

The P2P (person-to-person) transaction restrictions of INR 1 lakh per day would not alter, according to NPCI. All banks, apps, and PSPs (Payment Service Providers) are required by the circular to put these increased restrictions into effect by September 15, 2025.

Capital Market & Insurance Payments Now Allowed Up to INR 5 Lakh Per Transaction

The transaction limits for capital markets and insurance have been increased by NPCI for a period of 24 hours. This includes both the aggregate transaction and the per-transaction limits. Prior to this, a person could spend up to INR 2 lakh per transaction to pay their insurance premiums or engage in the stock market.

Beginning on September 15, one can pay verified merchants up to INR 5 lakh per transaction for capital markets or insurance. He can also pay up to INR 10 lakh in a 24-hour period. It should be noted that the INR 5 lakh transaction limit for IPO bids made through UPI remains unchanged and is not covered by the enlarged limit scope of capital market-related transactions. A 2020 NPCI circular states that transactions to AMCs, broking companies, mutual funds, and other like organisations fall under the capital market category.

EMD Payments and Credit Card UPI Transactions See Higher Caps

The restrictions for tax payments through the government e-Market Place (EMD Payments), also known as merchant category code (MCC) 9311, have also been increased to INR 5 lakh per transaction. Transactions up to INR 10 lakh can now be completed in a day with approved merchants in this category. Additionally, the 24-hour limit has been raised to INR 6 lakh, and the per-transaction limit for credit card payments has increased significantly from INR 2 lakh to INR 5 lakh.