UPI's new high-value transaction limits kick in today: Here's what changes

Higher caps will make it easier to pay for insurance, investments, and festive big-ticket spends

India’s most popular digital payments system, the Unified Payments Interface (UPI), is now officially more powerful. Starting September 16, the National Payments Corporation of India (NPCI) has raised transaction limits for several categories, making it easier to carry out high-value payments instantly and securely.

 

What’s new

For the first time, users will be able to make UPI payments of up to Rs 5 lakh per transaction, with daily limits as high as Rs 10 lakh for certain categories. The move brings UPI closer to traditional channels like NEFT and RTGS for large payments.

 

Here’s a quick look at the new limits:

 

·  Insurance premium payments: Rs 5 lakh per transaction, Rs 10 lakh daily

 

·  Capital market investments: Rs 5 lakh per transaction, Rs 10 lakh daily

 

·  Government e-Marketplace & travel bookings: Rs 5 lakh per transaction, Rs 10 lakh daily

 

·  Credit card payments & jewellery purchases: Rs 5 lakh per transaction, daily cap is Rs 6 lakh

 

·  Business/merchant transactions: Rs 5 lakh per transaction, no daily cap

 

·  Foreign exchange (BBPS): Rs 5 lakh per transaction, Rs 5 lakh daily

 

·  Digital account opening: Rs 2 lakh per transaction, Rs 2 lakh daily

 

The standard Rs 1 lakh cap for peer-to-peer UPI transfers remains unchanged. Everyday merchant payments outside these categories will also stay at current limits.

 

Why does this matter?

Until now, consumers often had to switch to net banking or RTGS for payments above Rs 1 lakh. The revised limits mean large insurance premiums, SIP lumpsums, or even jewellery purchases can now be settled instantly through UPI.

 

Siddharth Mehta, co-founder of Kiwi, told Business Standard, “Effective from September 16, NPCI’s decision to extend higher UPI limits to more categories of transactions is a significant development, as it enables seamless and secure high-value payments. The timing of this move is particularly relevant with the festival season beginning, as consumers are expected to spend on large ticket items like gold jewellery, and even book travels for the season.”

 

The change positions UPI as more than just a tool for small daily payments. By opening the doors to higher-value transactions, NPCI is betting on UPI becoming a one-stop solution for everything from festival shopping to large financial commitments, all with the convenience and speed users expect.