UPI (Unified Payments Interface) has once again made headlines, this time with a major upgrade that’s set to benefit millions of Indians. Already the most popular digital payment method in the country, UPI is now getting a huge boost in its transaction limits.
Until now, most users could transfer up to ₹1 lakh per day via UPI. But starting September 15, 2025, that limit is getting a big jump, up to ₹10 lakh per day, but only for certain types of payments.
Where the New Limit Applies
The National Payments Corporation of India (NPCI) has announced that the higher limit will apply to categories such as:
- Insurance premium payments
- Tax payments and refunds
- Loan EMIs
- Stock market investments
With the tax-filing deadline also set for September 15, 2025, this change comes at the perfect time. Until now, many taxpayers faced trouble paying large amounts because of the old ₹1 lakh cap. To fix this, NPCI has set a new rule:
- ₹5 lakh per transaction for tax-related UPI payments
- ₹10 lakh total limit per 24 hours
- P2M Only, Not P2P
This change applies only to P2M (Person-to-Merchant) transactions—like when you pay a registered merchant such as the income tax portal, an insurance company, a stockbroker, or a bank.
For P2P (Person-to-Person) transfers, the daily cap will remain at ₹1 lakh. So if you’re sending money to a friend or family member, the limit hasn’t changed.
Banks and Apps Will Follow Soon
NPCI has advised all banks, UPI apps, and payment service providers to adopt the new limits. Most banks are expected to roll this out from September 15, 2025, although some might take a little longer depending on internal policies.
One thing to note: if you’re applying for an IPO (Initial Public Offering) through UPI, the existing cap of ₹5 lakh per transaction will continue. The new ₹10 lakh limit won’t apply here.
This move is a huge relief for:
- Professionals and industrialists, who often need to make big-ticket payments
- High-net-worth individuals, who deal with large sums for investments and insurance
- Everyday consumers, who can now use UPI for hefty loan EMIs, FDs, or even digital services without hassle
With this upgrade, UPI is not just convenient, it’s becoming the go-to payment system for almost every kind of financial transaction in India.