Big Boost for UPI Users: Transaction Limits Raised to ₹10 Lakh for Select Payments Starting September 15

Sending large payments via UPI is about to get much easier. From September 15, 2025, users will be able to transfer up to ₹10 lakh in a 24-hour window for specific categories like tax payments, insurance premiums, EMIs, and capital market investments. This move comes as a major update from the National Payments Corporation of India (NPCI), aiming to make high-value digital transactions more accessible and convenient.

Why This Change Is Important Right Now

With the income tax return (ITR) filing deadline falling on September 15, 2025, the timing of this update is no coincidence. Many individuals and businesses face challenges when trying to make large tax payments through UPI due to earlier limits. Responding to this, NPCI has raised the cap specifically for transactions linked to government and financial services.

According to the official circular, the per-transaction limit for tax-related payments will now go up to ₹5 lakh, while the daily limit has been extended to ₹10 lakh. This update is aimed at easing the pressure on users who need to settle sizable financial obligations within a limited timeframe.

Who Will This Benefit?

These updated limits are especially beneficial for professionals, business owners, and individuals dealing with high-value transactions. Whether it’s paying income tax, insurance premiums, investing in the stock market, or clearing hefty loan EMIs, users will now be able to complete such transactions using UPI without splitting payments or switching to other methods.

What Types of Transactions Are Covered?

This new UPI limit enhancement applies specifically to P2M (Person-to-Merchant) transactions. These are payments made to verified merchants—such as brokerage firms, tax platforms, banks, insurance providers, and other registered institutions.

It’s important to note that P2P (Person-to-Person) payments will remain capped at ₹1 lakh per day, and are not affected by this change.

Updated Limits by Category

Tax Payments (MCC 9311):

Now allowed up to ₹5 lakh per transaction, with a daily cap of ₹10 lakh via UPI.

Insurance and Capital Market Investments:

Increased from the previous ₹2 lakh limit to ₹5 lakh per transaction and ₹10 lakh in 24 hours.

(Includes mutual funds, AMCs, and stockbrokers.)

Loan EMIs and B2B Collections:

Users can now make payments up to ₹5 lakh per transaction, with a ₹10 lakh daily cap.

Credit Card Bill Payments:

Previously restricted to ₹2 lakh, this has now been revised to ₹5 lakh per transaction and ₹6 lakh in a 24-hour period.

Foreign Exchange (FX Retail):

Buying or selling foreign currency? You can now make UPI payments up to ₹5 lakh per transaction.

Digital Accounts and Fixed Deposits (FDs):

Whether you’re opening a digital savings account or investing in an FD, UPI payments up to ₹5 lakh per transaction are now supported.

Are All Banks on Board?

While NPCI has issued clear instructions to all banks, UPI apps, and Payment Service Providers (PSPs) to enforce these limits from September 15, it has also allowed banks the flexibility to set their own internal thresholds. So, while these are the upper limits approved by NPCI, the final availability may vary slightly depending on your bank or UPI app. Most major players are expected to roll out the new limits on time.

What About IPO Investments?

Though capital market transaction limits have gone up, IPO bids through UPI will still stick to a maximum of ₹5 lakh per transaction. This segment hasn’t been included under the revised ₹10 lakh per-day limit.

By lifting these restrictions, more users—especially professionals, investors, and businesses—can now handle significant financial transactions from the comfort of their mobile devices, without the friction of switching to NEFT, RTGS, or net banking.