NPCI raises daily UPI payment limit on P2M transactions to Rs 10 lakh

Mumbai: The National Payments Corporation of India (NPCI) has raised the Unified Payments Interface (UPI) transaction limits for person-to-merchant (P2M) payments to up to Rs 10 lakh in 24 hours for specified categories, effective from Monday.

The move seeks to facilitate larger payments in key sectors and enhance digital adoption in high-value segments. The NPCI maintained the person-to-person (P2P) limit at Rs 1 lakh per day.

Earlier users often encountered restrictions, forcing them to split payments or revert to traditional methods like cheques or bank transfers.

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Under the revised framework, capital market and insurance payments, the per-transaction limit has been hiked from Rs 2 lakh to Rs 5 lakh, with a daily limit of Rs 10 lakh.

Government e-Marketplace transaction limit, including earnest money deposits and taxes, have been increased to Rs 5 lakh per transaction, up from Rs 1 lakh. Per-transaction limits for travel bookings, loan repayments, and EMI collections have also been increased to Rs 5 lakh from Rs 1 lakh.

Credit card bill payments too are permitted for up to Rs 5 lakh in a single transaction, though the 24-hour limit is set at Rs 6 lakh.

For loan and EMI collections, users can now pay Rs 5 lakh per transaction with a daily total of Rs 10 lakh.

Further, jewellery purchases have also received a modest boost, with the UPI limit increased from Rs 1 lakh to Rs 2 lakh per transaction and Rs 6 lakh per day. Additionally, banking services like term deposits through digital onboarding are now capped at Rs 5 lakh both per transaction and per day, compared to the earlier Rs 2 lakh.

Fintech firms and other industry leaders praised the changes as beneficial for businesses and consumers, where higher limits tackle a significant issue in sectors such as insurance, investments, and travel, where customers had to divide transactions.

Individuals can now pay insurance premiums or renew policies in a single, convenient transaction, accelerating policy servicing and improving customer satisfaction.

Notably, a higher limit for UPI transactions is only allowed for verified merchants, adding another layer of safety and building trust among individuals.

Industry leaders emphasised that enhanced security protocols, such as mandatory multi-factor authentication and stricter merchant vetting, will support the increased limits. NPCI announced that eligible users will see the changes applied automatically, requiring no additional steps.