UPI Transaction Limit 2025: Latest Updates and What You Should Know

UPI Transaction Limit 2025: Latest Updates & What You Should Know

Date: September 2025

What is UPI?

Unified Payments Interface (UPI) is India’s instant payment system developed by NPCI (National Payments Corporation of India). It lets users send or receive money, pay merchants, bills, etc., directly from bank accounts using mobile apps. Because UPI is so central to digital payments in India, any changes in its transaction limits matter a lot to both individuals and businesses.

Recent Changes in UPI Transaction Limits

As of September 15, 2025, NPCI has introduced updated limits for certain categories of UPI transactions, especially for high-value payments and verified merchants. (The Economic Times)

Here are key changes:

“Old” means the limits before the changes took effect on 15 September.

Also note:

• For most everyday person-to-merchant (P2M) transactions (e.g. paying for groceries, small businesses, utility bills not in special categories), the daily UPI transaction limit remains at ₹1,00,000 or whatever limit is set by the user’s bank/app. (idfcfirstbank)

• Person-to-Person (P2P) transfer limits are unchanged and are still capped (usually at ₹1,00,000/day) for most users. (The Economic Times)

Why These Changes Were Made

• To allow higher value digital transactions via UPI without needing traditional bank transfers or cheques. This is particularly useful for insurance, capital market investments, tax payments, etc. (The Times of India)

• To simplify and accelerate payment flows, especially for verified merchants, reducing the need for split payments when one transaction exceeds the earlier caps. (The Economic Times)

• To respond to demand — as UPI usage has grown massively, users and businesses increasingly needed larger transaction capabilities. (The Economic Times)

What Users Should Be Aware of

• These higher limits apply only to specific categories and verified merchants. Regular merchant or casual transfers may not qualify. (The Economic Times)

• Even with NPCI’s guidelines, individual banks or UPI apps may set lower internal limits as per their risk policy or user KYC status. So check with your bank/app. (ClearTax)

• Transactions like credit card bill payments, insurance etc., will benefit from these changes. But it's important to confirm whether your payment falls under the updated category.

• For everything else, P2P transfers remain constrained, so for large transfers to friends/family, plan accordingly.

Example Scenarios

Here are some hypothetical examples to illustrate:

• If you are paying an insurance premium of ₹4,50,000, earlier you might have to split into two payments; now you can do a single UPI transaction (after Sep 15) because the per-transaction limit in that category is ₹5,00,000.

• If you are investing in mutual funds (capital markets) worth ₹8,00,000 in a single day through UPI (verified merchant), earlier it would not have been possible via one payment; now the daily aggregate limit of ₹10,00,000 allows it (though per-transaction still capped at ₹5,00,000, so may need two transactions).

What to Do: Check & prepare

1. Review your bank / UPI app’s limits: Even though NPCI sets guidelines, your bank/app might have lower caps.

2. Ensure merchant verification/KYC: The merchant or service provider must be verified to avail these higher limits.

3. Plan large payments accordingly: If you have a high-value bill or investment, schedule it after these new limits come into force (from Sep 15, 2025).

4. Keep documentation ready: For high-value transactions, there might be additional checks or documentation needed.

Conclusion

The recent raise in UPI transaction limits (from mid-September 2025) makes the system more powerful and useful, especially for high-value financial obligations like investments, insurance, credit card/loan payments, and government/tax payments. For everyday users, most of the time the daily limit of ₹1 lakh remains in effect unless you’re dealing with one of the “special” categories.

Here’s a table summarizing the latest UPI limits (2025) for major apps / general rules plus NPCI’s special categories. Note: many limits are set by NPCI and then some apps/banks have additional / lower caps depending on KYC, merchant verification etc. Always check with your specific app/bank for the exact limits.

📊 UPI Limit Comparison: Major Apps & NPCI Rules (2025)

“Special / High Value Categories” include:

• Capital Markets / Investments

• Insurance Premiums

• Credit Card Bill Payments

• Government / e-Marketplace / Tax / EMD Payments

• Travel & Related Services

• Collections (EMIs, etc.)

• Jewelry, Digital Account Opening etc. (The Economic Times)

✅ Key Things to Check / Remember

• Even though NPCI sets these higher limits for certain categories, your bank or UPI app might have its own internal lower limit, especially if KYC not fully done.

• The higher limits apply only from September 15, 2025, as per the new NPCI guideline. (The Economic Times)

• Person-to-Person (P2P) transfers are not getting the same large-increase benefits for high-value special categories — P2P limits largely remain around ₹1,00,000/day for standard users. (Fortune India)

• For apps, the limit might depend on your verification status (minimal KYC vs full KYC) or whether merchant is verified. For example, PhonePe’s older limit with minimal KYC is lower. (Navbharat Times)