UPI Transaction Limit Raised to ₹5 Lakh per Day

Rapid Summary

• NPCI Proclamation: the National Payments Corporation of India (NPCI) has raised UPI transaction limits for select categories, effective September 15, 2025.
• New Limits:

– For tax payments, government e-marketplace (GeM), travel, business/merchant-related transactions: ₹5 lakh per transaction.
– Categories including insurance premiums and capital markets have a cumulative limit of ₹10 lakh within 24 hours.

• Verification Requirement: Enhanced limits apply only to “verified Merchants” adhering to NPCI guidelines and member banks’ internal policies within prescribed ceilings.
• Statement from NPCI: NPCI highlighted market demands for higher per transaction limits as UPI continues growing as a preferred payment method.
• additional new rules applied across various merchant categories quoted via BHIM social media post.

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indian Opinion Analysis

The increase in UPI transaction limits reflects India’s fast-evolving digital payment ecosystem and its widespread adoption among businesses and individuals. By enabling higher-value transactions seamlessly through verified merchants, this move caters specifically to growing industries such as capital markets and insurance were larger payments are routine. While this advancement supports ease of doing business in sectors like travel and e-marketplace purchases via GeM platform,the focus on compliance by member banks ensures the robustness of the framework. Expanding default cumulative caps aligns with financial digitization but relies heavily on adherence to strict security standards under NPCI guidelines.

This step could fortify trust in large-scale cashless transitions while helping extend transparent operations across vital sectors like taxation or merchant ecosystems at scale-an essential enabler for India’s ambition towards becoming a digital payment powerhouse globally.

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