The National Payments Corporation of India (NPCI) has announced a significant update for Unified Payments Interface (UPI) users, increasing the daily Person-to-Merchant (P2M) transaction limit to ₹10 lakh with verified merchants. This development marks a major step in enhancing the utility of UPI payments for high-value transactions across select sectors, making digital payments more convenient and efficient.
Key Changes in UPI Transaction Limits
As per the recent NPCI circular, the per-transaction limit for P2M transactions has been raised to ₹5 lakh, enabling users to make large payments in a single transaction without splitting them into multiple transfers. Previously, the per-transaction limit was lower, which often required multiple transfers for high-value payments.
The daily cumulative P2M transaction limit has now been increased to ₹10 lakh, applicable for verified merchants in specific categories, including:
- Insurance premiums – Pay life, health, and general insurance premiums directly via UPI
- Capital markets – Seamless payments for mutual funds, stocks, and other investment instruments
- Travel – Book flight, train, and bus tickets through UPI-enabled platforms
- Collections – Bill payments, subscriptions, and other recurring payments
- Government e-Marketplace (GeM) – Make high-value payments for government procurement and tenders
P2P Transactions Unchanged
While the P2M limits have been enhanced, the Person-to-Person (P2P) transfer limit remains unchanged at ₹1 lakh per day, ensuring that daily peer-to-peer transactions continue to be safe and manageable.
Benefits of the Increased P2M Limit
- Enhanced Convenience – Users can now make large-value payments in sectors like insurance, capital markets, and travel without facing multiple transaction hurdles.
- Faster Payments – Higher per-transaction limits reduce the need for splitting payments, saving time for users and merchants alike.
- Boost to Digital Economy – By enabling high-value transactions via UPI, NPCI is promoting the growth of digital payments in India, aligning with the government’s Digital India initiative.
- Support for Verified Merchants – Ensures transactions are secure and reduces the risk associated with high-value payments.
How to Make High-Value UPI Payments
Users can make P2M payments up to ₹5 lakh per transaction and a cumulative ₹10 lakh per day using any UPI-enabled app, provided the merchant is verified under the approved categories. Most popular UPI apps, such as PhonePe, Google Pay, Paytm, and BHIM, support these high-value transactions.
Looking Ahead
The NPCI’s revision of UPI P2M limits reflects the growing trust in digital payments among Indian users and merchants. As UPI becomes increasingly central to high-value financial transactions, these changes are expected to enhance user adoption, convenience, and overall efficiency in India’s payment ecosystem.
