Winning Bizness Desk
Mumbai.UPI users in India received a major update today as the National Payments Corporation of India (NPCI) introduced changes to daily payment limits. Effective from September 15, the limit for certain transactions has been raised, giving customers more flexibility in payments. This development comes as part of the government’s effort to ease digital transactions and provide more freedom for high-value purchases.
Daily payment limit increased for UPI users
Earlier, the maximum UPI limit for payments was set at 2 lakh rupees. With the latest change, users can now make transactions up to 10 lakh rupees daily in selected categories. This is expected to boost digital transactions, particularly in sectors like jewelry, travel, loans, and capital markets.
No change in person-to-person payments
The new rule does not cover all transactions. Payments made directly from one individual to another, also known as person-to-person or P2P transactions, will remain the same. The limit here continues to be 1 lakh rupees per transaction, ensuring regular transfers are unaffected.
Understanding P2P and P2M transactions
To clarify, when an individual pays another individual, it falls under the P2P category. On the other hand, when a person pays a business or merchant, it is called person-to-merchant or P2M. The revised limit of 10 lakh rupees applies only to certain P2M transactions, where goods, services, or financial dues are involved.
Jewelry purchase limit significantly raised
One of the biggest changes comes in jewelry purchases. Earlier, a single transaction limit stood at 1 lakh rupees. Now, users can pay up to 2 lakh rupees per transaction and 6 lakh rupees within 24 hours. This is expected to boost the jewelry sector, especially during festivals and wedding seasons.
Higher limit for travel bookings
For travel-related expenses, the UPI payment capacity has been raised. Customers can now make payments of up to 5 lakh rupees in a single transaction and 10 lakh rupees within a day. This will help passengers booking air tickets, railway tickets, and large travel packages with ease.Loan repayment and capital market transactions
The new rules also support people repaying loans through UPI. Loan repayments can now be made up to 5 lakh rupees per transaction and 10 lakh rupees within a day. Similarly, investments in capital markets, including mutual funds and shares, will also enjoy the same limit of 5 lakh rupees per transaction and 10 lakh rupees in a day.
Credit card and insurance premium payments
Credit card bill payments through UPI have been expanded. Customers can now pay 5 lakh rupees in a single transaction and 6 lakh rupees within 24 hours. Earlier, the single transaction limit was capped at 2 lakh rupees. Insurance premium payments have also been raised to 5 lakh rupees per transaction and 10 lakh rupees per day.
Digital account opening also included
For people opening new digital accounts, the UPI system now allows initial deposits up to 5 lakh rupees per transaction. This change is aimed at supporting digital banking and smooth account openings without restrictions on initial fund transfers.
These revisions are a step toward increasing the scope of UPI and making it a reliable option for high-value payments. With these changes, users, businesses, and financial institutions are expected to benefit from faster, safer, and wider use of digital transactions.
Summary pointers:
1. NPCI revised UPI transaction rules from September 15.
2. Daily limit for select payments raised to 10 lakh rupees.
3. Person-to-person transaction limit remains unchanged at 1 lakh.
4. Jewelry purchases allowed up to 6 lakh rupees daily.
5. Travel bookings limit raised to 10 lakh rupees per day.
6. Loan repayment and capital market capped at 10 lakh daily.
7. Credit card and insurance payments limits significantly increased.
