UPI Transaction Limits Increased: The National Payments Corporation of India (NPCI) has informed in a circular issued on August 28 that now the UPI transaction limit has been increased in some special categories. For categories related to tax payment, this limit will be increased to ₹ 5 lakh from September 15.
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NPCI says that UPI has now become the favorite payment system of the people and there was a constant demand from the market that the per transaction limit should be increased in some additional categories as well.
It is necessary to follow the guidelines of NPCI
This increased limit will be applicable only to those merchants who are in line with the guidelines of NPCI and fall under the category of ‘Verified Merchant’. Acquiring Member Banks will ensure that only such eligible merchants get the increased limit. However, NPCI has also clarified that banks can set different limits at their level based on their internal policies, but it cannot exceed the fixed limit.
In which categories has the limit increased?
| Categories | Enhanced limit | Cumulative |
|---|---|---|
| Capital market | 5 lakh | 10 lakh |
| Insurance | 5 lakh | 10 lakh |
| Travel | 5 lakh | 10 lakh |
| Credit card bill | 5 lakh | 6 lakh |
| Collections | 5 lakh | 10 lakh |
| Business/merchant | 5 lakh | — |
| Jewellery | 2 lakh | 6 lakh |
| FX retail use case | 5 lakh | 5 lakh |
| Digital Account opening | 5 lakh | 5 lakh |
| Digital account opening – initial funding | 2 lakh | 2 lakh |
Compliance required by 15 September 2025
NPCI has directed all apps and payment service providers to make the necessary technical changes on time and ensure full compliance with the new rules by 15 September 2025.
Overall, this move will make the use of UPI more convenient and provide relief to customers making large transactions.
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