National Payments Corporation of India (NPCI) has increased the transaction limits for entities under categories aligned to tax payments to ₹5 lakh with effect from 15 September.
With UPI emerging as a preferred payment method, there are requirements from the market on extending higher per-transaction limits for additional categories of transactions in UPI, reads an NPCI circular dated 28 August.
The enhanced UPI limits will be applicable for merchants that are categorised as verified merchants.
Acquiring member banks are supposed to ensure that such limits are provided to the merchants that are compliant with the NPCI guidelines, it reads further.
However, NPCI has clarified that member banks may continue to exercise discretion to set their internal limits based on their internal policy, subject to the overall ceilings.
| Categories | Enhanced limit | Cumulative |
|---|---|---|
| Capital market | 5 lakh | 10 lakh |
| Insurance | 5 lakh | 10 lakh |
| Travel | 5 lakh | 10 lakh |
| Credit card bill | 5 lakh | 6 lakh |
| Collections | 5 lakh | 10 lakh |
| Business/merchant | 5 lakh | — |
| Jewellery | 2 lakh | 6 lakh |
| FX retail use case | 5 lakh | 5 lakh |
| Digital Account opening | 5 lakh | 5 lakh |
| Digital account opening – initial funding | 2 lakh | 2 lakh |
(Source: NPCI)
Categories in which limits are enhanced
The categories in which higher limits are extended include capital markets, insurance, government e-marketplace, travel, credit card bill payments, collections, business/merchants (including pre-approved payments), jewellery, FX retail use case with BPS platform, digital account opening for term deposits, and digital account opening – initial funding.
In the capital market, insurance, government e-marketplace, travel, credit card bill payments, collections, and business/merchant, the enhanced limit is ₹5 lakh.
In case of jewellery category and digital account opening – initial funding, enhanced limit is ₹2 lakh. For term deposit digital account opening and FX retail use case with the BBPS Platform, an enhanced limit is ₹5 lakh for each of these categories.
All apps and payment service providers are supposed to undertake requisite changes and ensure compliance with the same by 15 September 2025.
