The Unified Payments Interface (UPI), which has seen massive adoption not only in India but also globally, is set to undergo a major change. Until now, users could transfer only up to ₹1 lakh through UPI. However, from September 15, 2025, the limit will be raised to ₹10 lakh for certain categories of transactions. The National Payments Corporation of India (NPCI) has announced this revision, which will make it easier for people to pay taxes, insurance premiums, loan EMIs, and even invest in the stock market conveniently.
The decision to increase the transaction limit has been taken keeping in mind the tax filing deadline of September 15, 2025. To facilitate higher-value payments, NPCI has revised the limit for tax-related UPI transactions to ₹5 lakh per transaction and ₹10 lakh per day. This move is expected to benefit individuals who carry out large-scale financial activities through digital platforms. With this change, UPI will further strengthen its position as a reliable and comprehensive payment ecosystem catering to diverse financial needs of users across the country.
The updated rules will apply only to Person-to-Merchant (P2M) payments, which means transactions with registered merchants such as insurance companies, brokerage firms, banks, and tax portals will fall under the new limit. Person-to-Person (P2P) transfers, however, will continue to have the same daily cap of ₹1 lakh. The categories where the limits have been revised include tax payments, insurance, capital markets, loan EMIs, business-to-business collections, credit card bills, foreign exchange, as well as digital savings accounts and fixed deposits.
For tax payments (MCC 9311), UPI transactions will now allow ₹5 lakh per payment and up to ₹10 lakh in 24 hours. In the case of insurance and capital market investments, the earlier cap of ₹2 lakh has now been raised to ₹5 lakh per transaction and ₹10 lakh per day. Loan EMIs and B2B collections will also fall under the same revised threshold. Meanwhile, credit card bill payments will now allow up to ₹5 lakh per transaction, but the daily cap will remain slightly lower at ₹6 lakh.
The foreign exchange category will now enable customers to purchase and sell foreign currency via UPI with a limit of ₹5 lakh per transaction. Similarly, digital savings account openings and fixed deposits (FDs) can also be funded through UPI with transactions of up to ₹5 lakh. This significant enhancement is aimed at providing greater convenience for high-value financial activities while maintaining the safety and efficiency of the platform. It further demonstrates the growing versatility of UPI beyond basic peer-to-peer money transfers.
NPCI has directed all banks, apps, and payment service providers (PSPs) to implement the new limit across their platforms. However, banks have also been given the freedom to set internal limits as per their risk and compliance policies. This means that while the new limit will officially come into effect from September 15, 2025, its availability may differ from one bank to another. Most major banks are expected to adopt it immediately, ensuring a smoother transition for customers engaging in large transactions.
For Initial Public Offerings (IPOs), however, the transaction limit remains unchanged. Investors bidding in IPOs through UPI will continue to have a per-transaction cap of ₹5 lakh, and the new ₹10 lakh limit will not be applicable in this case. This restriction ensures consistency in IPO-related processes while keeping investor participation streamlined. Despite this exception, the overall revision is set to empower millions of UPI users by enabling higher-value merchant payments in key financial categories.