NPCI increases UPI transaction limits across multiple categories

The National Payments Corporation of India (NPCI), operated by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA), has announced an increase in daily payment limits for users of its Unified Payments Interface (UPI).

The revised limits will come into effect in mid-September and apply to both peer-to-peer (P2P) and peer-to-merchant (P2M) transactions. Several sectors will benefit from these changes, including the Government e-Marketplace, insurance, travel and tourism, credit card repayments, business and merchant payments, retail foreign exchange transactions, and initial funding for opening digital accounts.

Key changes in transaction limits:

The revised UPI transaction limits will now allow users to make capital market investments of up to Rs 10,00,000 per day. For credit card repayments, the per-transaction limit has been increased to Rs 5,00,000, and the previous daily cap of Rs 6,00,000 has been removed.

Jewellery purchases can now be made up to Rs 6,00,000 in a single day, with a maximum of Rs 2,00,000 allowed per transaction. Business and merchant transactions also see an increased cap, with the transaction limit now raised to Rs 5,00,000. Additionally, the initial deposit required to open a new digital account has been set at an increased limit of Rs 5,00,000. 

The NPCI shared a category-wise breakdown of the new transaction limits via a post on X (formerly Twitter), confirming that the changes will be implemented from 15 September.

In addition to the revised limits, NPCI recently partnered with PayPal to facilitate cross-border payments. This collaboration will allow customers to send money globally and make international transactions using UPI in Indian Rupees (INR).

These updates mark a significant step forward in India’s digital payment ecosystem, offering greater flexibility and accessibility. With higher transaction limits and expanded international capabilities, the changes are expected to accelerate the country’s transition towards a cashless economy.