If we will look forward, the changes concerning the NPCI-governed UPI will be implemented on the 15th of September 2025, with higher payment limits being allowed for specific merchant categories. These changes are being put in place so that they can be useful in creating an enabling environment for undertaking high-value digital payments in places where restrictions had been there, or users were required to split payments.
What’s Changing: Per-Transaction And Daily Limit
The revised rules would allow:
- In certain merchant categories where insurance, capital market investments, travel, credit card bill payments, and Government e-Marketplace (GeM) for tax or earnest money payments are concerned, the per-transaction limit is getting enhanced to ₹5 lakh.
- Besides above-i.e., the daily cumulative limit (24-hour aggregate) also gets enhanced to ₹10 lakh for the same categories.
Note: Person-to-Person (P2P) UPI transfer limits remain unchanged at ₹1 lakh per day. These new higher P2M limits will be for P2M transactions with verified merchants only.
Benefits & Impacts
Such changes have importance because:
- The UPI interface presently does not support payments worth hundreds of thousands of rupees crossing a single transaction. Insurance premiums, investment in mutual funds, travel, and educational payments are all examples that, in the old system, had to be divided into multiple smaller ones.
- It promotes speed and convenience. Existence of such hurdles hampered high-value digital payments.
- Fewer failed or abandoned checkout instances will occur due to transaction cap in the case of merchants and businesses.
Important Notes & Security Measures
- The limits have been raised for verified merchants within the categories stated. Not all merchants will be automatically qualified.
- P2P limits remain unchanged. Hence, sending money through UPI to friends/family will still have an earlier cap of ₹1 lakh/day.
- Higher limits mean greater risk. NPCI and banks will enforce security measures-cli multi-factor authentication to merchant verification and suspicious activity.
What Should Users Do?
- In case you deal with high payments in one of the affected categories, please verify that the merchant is indeed confirmed under UPI for the higher limits.
- From 15 September, make it a point to keep an eye on the UPI setting in the bank/app for these higher limits.
- Nonetheless, splitting payments should be done only when needed because these high amounts can be cleared in one shot as per the new rules.
Also Read: HDFC Bank Fixed Deposits for 450 Days at a Higher Interest Rate!
