New UPI Rules From September 15: NPCI Raises UPI Transaction Limits, Why It Matters?

The National Payments Corporation of India (NPCI) has revised the UPI transaction limits, with effect from September 15, in order to facilitate big-ticket payments for retail buyers. The change would be applicable to select merchant categories like capital market investments, insurance premiums, credit card bills, travel, and government payments at varying thresholds as applicable for each category and the monthly limit will be counted on a monthly basis in the calendar month. P2P (Person to Person) transfers will remain capped at ₹1 lakh per day.

Key UPI Limit Changes

1. Credit Card Bill Payments

• Per transaction limit: ₹5 lakh
• Daily cap: ₹6 lakh

2. Loan & EMI Collections

• Per transaction: ₹5 lakh
• Daily cap: ₹10 lakh

3. Capital Market Investments & Insurance Payments

• Earlier limit: ₹2 lakh
• New limit: ₹5 lakh per transaction
• Daily cap: ₹10 lakh

4. Travel Industry Payments

• Up to ₹5 lakh per transaction

5. Government e-Marketplace (GeM) & Tax Payments

• Earlier limit: ₹1 lakh
• New limit: ₹5 lakh per transaction

6. Banking Services

• Term deposits (via digital onboarding): ₹5 lakh per transaction/per day (earlier ₹2 lakh)
• Digital account opening: remains capped at ₹2 lakh

7. Foreign Exchange (via BBPS)

• Limit: ₹5 lakh per transaction
• Daily cap: ₹5 lakh

Why This Matters

• Assists users to avoid breaking large payments into several smaller transactions.
• Facilitates instant processing of high value transactions like insurance premiums, EMI, investments, Government payments etc.
• Boosts business productivity by accelerating high-value digital payments.
• Still allows banks the discretion to apply lower caps based on their own risk policies.

To summarise, these changes signals yet another giant leap in making UPI not just a payment instrument for small everyday transactions, but a robust system for large financial dealings as well.