Big Update for UPI Users: New Transaction Limits from September 15 on PhonePe, Google Pay & More
If you’re someone who regularly transfers money using UPI platforms like PhonePe, Google Pay, or Paytm, there’s a major update you should know about. Starting September 15, 2025, the National Payments Corporation of India (NPCI) will roll out new UPI transaction limits — especially helpful for those making high-value payments for loans, insurance, taxes, and investments.
What’s Changing?
Earlier, UPI transactions were capped at ₹1 lakh per day for most users. But now, NPCI has revised the limits specifically for Person-to-Merchant (P2M) transactions — allowing:
- ₹5 lakh per transaction, and
- Up to ₹10 lakh per day
These new rules will apply only when you pay directly to verified businesses or service providers, such as:
- Insurance companies
- Stockbrokers
- Loan EMI payment portals
- Income tax departments
This means you can now make bigger payments via UPI — securely and conveniently — without splitting them into multiple transactions.
New UPI Transaction Limits: Sector-wise Breakdown
Category Old Limit New Per Transaction Limit New Daily Limit
- Insurance & Capital Markets ₹2 lakh ₹5 lakh ₹10 lakh
Loan EMI Payments ₹2 lakh ₹5 lakh ₹10 lakh
Credit Card Bill Payments ₹2 lakh ₹5 lakh ₹6 lakh
Important Note: These limits apply only to Person-to-Merchant transactions. The ₹1 lakh limit for Person-to-Person (P2P) transfers remains unchanged.
Why This Update Matters
The new UPI rules are rolling out just ahead of September 15, the deadline for many tax-related payments. The move is expected to make high-value payments faster and more seamless, especially for salaried individuals, self-employed professionals, and business owners.
By allowing higher limits, NPCI is addressing a growing demand from users who rely on UPI for large payments — from tax filing to investment and loan servicing.
Is It Safe?
Yes. These transactions are allowed only when sent to verified merchants and go through UPI’s secure platform. The increased limits do not apply to casual transfers between individuals (like sending money to a friend or family member).
Also, these new limits will be implemented across all UPI-enabled platforms — PhonePe, Google Pay, BHIM, Paytm, and others — as long as your bank supports the update.
From September 15, 2025, users will be able to send up to ₹10 lakh per day via UPI to verified merchants — a welcome move for those handling large payments online. This change reinforces India’s growing confidence in digital payments and is another step toward a cashless, tech-forward economy.
So, if you’re planning to pay taxes, EMIs, or invest using your UPI app — you’re in for a smoother, faster experience.