NPCI Hikes UPI Limits to ₹5 Lakh Per Transaction, ₹10 Lakh Daily

Current Context: On 5 September 2025, the National Payments Corporation of India (NPCI) raised the Unified Payments Interface (UPI) transaction limits for select merchant categories.

• The per-transaction limit was increased to ₹5 lakh, and the 24-hour cumulative limit to ₹10 lakh for Person-to-Merchant (P2M) payments.
• This applies to verified merchants in sectors like capital markets, insurance, government e-Marketplace (GeM), travel, collections, and credit card bill payments.
• Peer-to-Peer (P2P) transactions remain capped at ₹1 lakh per day.
• The changes aim to ease high-value digital payments and reduce the need for transaction splitting.
• Banks, apps, and Payment Service Providers (PSPs) must implement the framework by 15 September 2025.
• The move supports seamless, secure, and scalable digital commerce across key financial sectors.

Question:

Q.1 What is the new 24-hour cumulative limit for Person-to-Merchant (P2M) payments under the revised guidelines of National Payments Corporation of India (NPCI)?
a) ₹1 lakh
b) ₹2 lakh
c) ₹5 lakh
d) ₹10 lakh

Answer: d) The 24-hour cumulative cap was increased to ₹10 lakh for high-value Person-to-Merchant transactions, supporting larger digital transactions.