MUMBAI: The National Payments Corporation (NPCI) has said the daily transaction limits for person-to-merchant (P2M) payments through the ubiquitous unified payments interface (UPI) will be hiked from Rs 5 lakh to Rs 10 lakh in key sectors from September 15. However, the daily limit for person-to-person (P2P) payments remains unchanged at Rs 1 lakh per day.
The move is aimed at allowing larger commercial payments for categories such as insurance, capital markets and travel.
NPCI will now facilitate larger UPI payments in key sectors, making digital transactions more seamless for high-value purchases while maintaining security protocols. Users will be able to execute a transaction of up to Rs 10 lakh in 24 hours for specific, verified merchant categories, solely for P2M payments, it said.
The increase in UPI limits for insurance and capital markets offers users greater convenience and flexibility, making high-value payments simpler and faster.
For instance, in capital market investments and insurance payments, the per-transaction limit has been hiked from Rs 2 lakh to Rs 5 lakh, with a daily maximum of Rs 10 lakh. Similarly, on the government e-marketplace (GEM portal), including earnest money deposits and tax payments, up to Rs 5 lakh per transaction is allowed, up from the previous Rs 1 lakh ceiling.
The travel sector will see a substantial upgrade, with the transaction limit rising from Rs 1 lakh to Rs 5 lakh, complemented by a Rs 10 lakh daily cap.
Credit card bill payments too are permitted up to Rs 5 lakh in a single transaction, though the 24-hour limit is set at Rs 6 lakh. For loans and EMI collections, users can now pay Rs 5 lakh per transaction with a daily total of Rs 10 lakh.
Jewellery purchases have received a more modest boost, with the UPI limit increased from Rs 1 lakh to Rs 2 lakh per transaction and Rs 6 lakh per day. Additionally, banking services like term deposits through digital onboarding are now capped at Rs 5 lakh both per transaction and per day, compared to the earlier Rs 2 lakh.