NPCI Raises UPI Transaction Limits up to Rs 10 Lakh for Select Categories, Effective September 15, 2025.
Banking & Finance
In September 2025, the National Payments Corporation of India (NPCI) announced significant revisions to Unified Payments Interface (UPI) transaction limits, enhancing digital payment flexibility. The move is aimed at easing high-value merchant payments, aligning with tax payments, and strengthening India’s digital payment ecosystem.
- NPCI has increased the UPI transaction limit for categories related to tax payments to Rs 5 lakh per transaction, expanding the scope of digital adoption for government-linked services. This higher ceiling is designed to simplify compliance and enable faster settlement of tax dues via UPI.
- For 12 other specified categories, including education fees, healthcare payments, insurance premiums, and investments, NPCI has enhanced both the per-transaction limit and the daily aggregate limit to Rs 10 lakh. This ensures that businesses and individuals can conduct large-value digital transactions seamlessly across regulated merchant categories.
- The revised norms will take effect from September 15, 2025, and all banks, UPI apps, and Payment Service Providers (PSPs) are mandated to adopt the upgraded infrastructure. This rollout will support merchants with verified registrations and encourage broader acceptance of digital payment solutions across the formal economy.
Main Point :- (i) NPCI has clarified that the higher transaction ceilings apply strictly to Person-to-Merchant (P2M) payments with verified merchants. However, Person-to-Person (P2P) transfers will continue to have the existing cap of Rs 1 lakh per day, ensuring risk control in peer-to-peer remittances.
(ii) The National Payments Corporation of India (NPCI), established in 2008 under the Payment and Settlement Systems (PSS) Act, 2007, operates as an umbrella organisation for retail payments.
(iii) It was promoted by the RBI and the Indian Banks’ Association (IBA), and has been the driving force behind innovations such as UPI, RuPay, Bharat BillPay, FASTag, and AePS (Aadhaar Enabled Payment System).
About National Payments Corporation of India (NPCI)
MD & CEO : Dilip Asbe
Headquarter : Mumbai
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