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Big Update for UPI Users: New Transaction Limits from September 15 on PhonePe, Google Pay & More

Pic Credit: Pexel

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.

New Delhi, 21st August 2024: PhonePe, India’s leading digital payments platform, successfully hosted its Payment Gateway Confluence in New Delhi. The event, designed to educate partners about India’s most rewarding affiliate program, brought together web developers, IT solution strategists, and ERP consultants for a day of learning and networking.

PhonePe PG Confluence provides insights into the PG Partner Program, offering participants the opportunity to learn about product offerings and gain valuable insights into building and earning through this innovative affiliate program.

Ankit Gaur, Head of PhonePe Payment Gateway & Online Merchants, commented on the event’s success: “At PhonePe PG, we are not creating a distributor channel, we are building a partner journey founded on trust. With a strong focus on web developers, IT solution strategists, and ERP consultants, PhonePe PG Confluence provides an opportunity to learn about our product offerings and gain insights into how they can build and earn with the PhonePe PG Partner Program. This event is a testament to our commitment to creating a robust partner ecosystem that supports India’s digital transformation journey.”

The third edition of Confluence featured presentations from industry experts, providing attendees with in-depth knowledge about the PhonePe Payment Gateway solutions and the benefits of the Partner Program. Participants had the opportunity to engage in interactive sessions, ask questions, and network with peers and PhonePe representatives.

Leading brands in the payment solutions space, including Boxpay, Sellonboard, Payomatix, and Unicommerce, were part of the event, adding their unique perspectives and expertise to the discussions.

The Delhi chapter of Confluence highlighted the city’s importance as a key market for digital payment solutions and fintech innovations. The event provided a platform for local businesses to learn about PhonePe’s innovative payment solutions and network with industry peers.

PhonePe PG Partner Program enables merchants to offer their clients a complete suite of PhonePe Payment Gateway solutions, earning rewards on each transaction made by their referrals. This program is designed to create a win-win-win situation for the partner, their merchants and PhonePe, fostering growth and innovation in the digital payments ecosystem.