Gpay-PhonePe: The NPCI will simplify large digital payments following the August change to UPI rules. The transaction limit is currently being raised, and it will take effect on September 15, 2025. In person-to-merchant transactions, the cap on insurance loan investment, etc., will rise. The transaction limit in sectors such as capital market investment, travel booking, and loan payment will alter. Person-to-person payments will still be limited to Rs 1 lakh, though.
The UPI rules underwent many changes last month, in early August. At the same time, the National Payments Corporation of India, or NPCI, would once more simplify large digital payments via the Unified Payments Interface, or UPI. Yes, an increase in the transaction limit has been announced this time. This new regulation will take effect on September 15, 2025. In other words, Gpay-PhonePe users ought to be familiar with them by now.
These fresh changes will be very useful for P2M (person-to-merchant) transactions. Put simply, if you invest in the market, pay your loan EMIs, or pay your insurance subscription. The daily cap of Rs 1 lakh will still apply to person-to-person transactions, like as sending money to friends or family. This will not change at this time. Let us see how the UPI limit has changed.
What is the UPI limit changing?
You will soon be able to transact up to Rs 5 lakh each transaction, rather than Rs 2 lakh, and a maximum of Rs 10 lakh in a single day for capital market investing and insurance.
Also, the limit for government e-marketplace and tax payment would be raised from Rs 1 lakh to Rs 5 lakh per transaction.
Travel booking: The daily cap will be up to Rs 10 lakh, and transactions will be priced at Rs 5 lakh instead of Rs 1 lakh.
Payment of credit card bills: You can pay up to Rs 5 lakh at a time, but no more than Rs 6 lakh in a single day.
Also, the limit for loan and EMI collection would be raised from Rs 5 lakh per transaction to a maximum of Rs 10 lakh per day.
Purchase of jewelry: Following the revised cap, you can now pay up to Rs 2 lakh per transaction rather than Rs 1 lakh, with a daily cap of Rs 6 lakh.
Term Deposit: You will now be allowed to make Rs 5 lakh per transaction, up from Rs 2 lakh previously, following the new restriction.
There has been no change to the digital account opening process; the 2 lakh limit remains in effect. Aside from this, BBPS will soon allow foreign exchange payments up to Rs 5 lakh per transaction, with a daily limits of Rs 5 lakh. the NPCI, citizens and companies will greatly profit from these changes. This will also make it easier to make large digital payments. These changes will further promote cashless transactions.