India’s Unified Payments Interface (UPI) will see significant enhancements starting September 15, 2025, allowing larger transactions for certain verified merchants. The National Payments Corporation of India (NPCI) has increased transaction limits for high-value sectors such as insurance, investments, travel, and credit card bills. This development aims to facilitate smoother, faster high-value digital payments, encouraging broader adoption of digital transactions.
Specifically, for Person-to-Merchant (P2M) transactions, eligible verified merchants can now accept up to Rs. 5 lakh per transaction, with a daily cap of Rs. 10 lakh. These modifications are well-received by fintech experts, who see them as a vital step towards expanding digital transaction capabilities in traditionally under-penetrated high-value segments. Akash Sinha, CEO of Cashfree Payments, emphasised that this move effectively addresses the challenges faced by businesses involved in high-value payments.
The increases in limits are sector-specific:
- Insurance and capital market investments: Rs. 2 lakh to Rs. 5 lakh per transaction; Rs. 10 lakh daily limit.
- Government e-Marketplace (GEM) transactions, such as earnest money or tax payments, are capped at Rs. 1 lakh to Rs. 5 lakh per transaction.
- Travel bookings: from Rs. 1 lakh to Rs. 5 lakh per transaction; Rs. 10 lakh daily cap.
- Credit card bills and loan/EMI collections: similar relaxed limits.
- Jewellery purchases: modest increase from Rs. 1 lakh to Rs. 2 lakh per transaction, with a daily limit of Rs. 6 lakh.
The Rs. 1 lakh daily limit for P2P transactions remains unchanged. These upgrades improve convenience for large payments, reducing the need to split payments or use slower methods like cheques. They also encourage faster digital adoption by enabling high-value transactions via UPI.
For merchants and businesses, this means fewer checkout failures and better customer satisfaction. Safety measures like multi-factor authentication and merchant verification are reinforced to prevent fraud.
Only verified merchants in specific categories are eligible, and system support across banks and apps must be seamless to avoid glitches.
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This move advances India’s digital payments, making high-value transactions simpler, faster, and more secure. Engaged in large payments, such as insurance, travel, investments, or credit bills, these new limits will prove beneficial, reinforcing India’s progress toward a more mature digital economy.
