UPI Transaction- Good news for UPI users. To make digital payments more accessible and faster, the National Payments Corporation of India (NPCI) has taken a big decision. Now transactions up to Rs 10 lakh can be done in 24 hours through UPI. This change has been made especially for those categories which are related to tax payment and other financial services. This new system will come into effect from 15 September 2025. NPCI has taken this step keeping in mind the last date for filing income tax returns, so that tax related payments can be made even easier and faster.
Banks got freedom to set internal limits
With this change, NPCI has also given freedom to banks that they can set internal transaction limits as per their policies and security standards. However, it has to be ensured that the maximum limit of 24 hours does not exceed Rs 10 lakh. This will give banks an opportunity to focus on customer convenience as well as security.
This facility will be applicable only on transactions with verified merchants and institutions. That is, this limit has been increased only for person-to-merchant transactions. In areas like capital market, insurance premium payment and tax deposit, now the limit per transaction has been increased to Rs 5 lakh and the total limit in 24 hours has been increased to Rs 10 lakh. Earlier the limit per transaction here was only up to Rs 2 lakh.
This change will not affect the transactions between common users. The limit for person-to-person transactions will still remain Rs 1 lakh per day. That is, if a person wants to send money to an acquaintance or family member, he will be able to send a maximum of Rs 1 lakh only.
Big step in digital payment
This decision of NPCI is going to further encourage digital payments in India. In areas like tax and insurance where large payments are often made online, this change will bring convenience to people. Apart from this, it will also be convenient for traders and investors, as they will no longer need to make repeated transactions for payments.
This decision is being considered another big step towards the Digital India campaign and cashless economy. Now it remains to be seen how it is implemented by banks and payment service providers and how much the customers are able to benefit from it.