The National Payments Corporation of India (NPCI) has made a major update to UPI payments. From September 15, the daily transaction limit for person-to-merchant (P2M) payments has been increased to ₹10 lakh. This change is meant to make large payments easier and more secure in important sectors.
However, the limit for person-to-person (P2P) payments will remain at ₹1 lakh per day.
Where Have the Limits Been Increased?
Earlier, people had to depend on bank transfers or cash for bigger transactions. With this new rule:
Insurance & Capital Market: Per transaction limit raised from ₹2 lakh to ₹5 lakh; daily limit set at ₹10 lakh.
Government e-Marketplace (GEM): Per transaction limit raised from ₹1 lakh to ₹5 lakh.
Travel-related Payments: Per transaction limit increased from ₹1 lakh to ₹5 lakh; daily limit set at ₹10 lakh.
Credit Card Bill Payment: Limit set at ₹5 lakh per transaction and ₹6 lakh per day.
Jewelry Purchase: Limit raised from ₹1 lakh to ₹2 lakh per transaction and ₹6 lakh per day.
Why Was This Change Made?
Fintech experts have welcomed this decision, calling it timely and useful.
Business Benefits: Aakash Sinha, CEO of Cashfree Payments, said it will help businesses manage large payments smoothly. Customers can now pay in a single transaction instead of splitting amounts.
Customer Convenience: Akshay Mehrotra, co-founder of Fibe, said this step adds more flexibility and convenience, making UPI even more versatile.
Security Measures: To prevent fraud with high-value transactions, NPCI has also introduced stronger safety features like multi-factor authentication and a verification process.
