What Are the New UPI Transaction Limits?
From September 15, 2025, UPI transaction limits will be categorised into distinct segments, covering retail payments, bill settlements, healthcare, education, and high-value transactions. While small-value payments will remain unaffected, specific sectors such as insurance, investments, and government-related payments will now see revised thresholds.
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Retail transactions: The daily cap will remain at ₹1 lakh, ensuring no disruption for day-to-day users.
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Healthcare & education payments: The limit has been increased to ₹5 lakh, providing ease for high-value fees and medical expenses.
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Capital markets & insurance premiums: A maximum of ₹2 lakh per transaction will be allowed.
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Credit card bill repayments via UPI: The limit is set at ₹1.5 lakh per day.
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Government-related services: Special exemptions will apply with higher transaction ceilings.
Why the Change in UPI Transaction Limits?
The rise in UPI adoption across India has been phenomenal, with billions of transactions being processed monthly. Revising the limits ensures that sectors requiring larger payments, like healthcare and education, are not restricted. It also balances the need for convenience with safety by curbing excessively high transfers in sensitive categories.
Impact on Users and Businesses
For regular users, the revised UPI transaction limits will not cause much disruption in everyday purchases such as groceries, dining, and shopping. However, those making high-value transactions—such as paying insurance premiums, college fees, or hospital bills—will find the new rules more convenient. Businesses and service providers in these sectors are expected to benefit from faster settlements and reduced dependency on traditional banking channels.
According to a statement from the National Payments Corporation of India (NPCI), the per-transaction limits for certain categories of UPI payments will change from September 15, 2025. The new rules apply to transactions with verified merchants and do not affect the existing ₹1 lakh per-transaction limit for peer-to-peer (P2P) transfers.
Here is the full list of new limits:
₹5 lakh per transaction and ₹10 lakh daily cumulative limit:
Capital Markets (Investments)
Insurance
Government e-Market Place (GeM)
Travel
Collections
₹5 lakh per transaction and ₹6 lakh daily cumulative limit:
Credit Card Payments
₹2 lakh per transaction and ₹6 lakh daily cumulative limit:
Jewellery
₹5 lakh per transaction and no daily cap:
Business/Merchant Payments
₹5 lakh per transaction and ₹5 lakh daily cumulative limit:
FX Retail via BBPS
Digital Account Opening
₹2 lakh per transaction and ₹2 lakh daily cumulative limit:
Digital Account Opening – Initial Funding
Key Takeaway
With the new UPI transaction limits effective from September 15, 2025, India’s most widely used digital payment system is stepping into its next phase of growth. By tailoring limits according to categories, NPCI aims to strike the right balance between security, ease of use, and scalability.