The National Payments Corporation of India (NPCI) has introduced a raise in UPI limits for merchant and shop payments, effective from September 15, 2025. This update aims to make digital transactions smoother for businesses and customers. Person-to-person transaction limits remain unchanged. So, read to know all the details.
Raise In UPI Limits For Verified Merchants
NPCI increases transaction limits for verified merchants across various categories. These changes support larger payments for specific sectors. Below are the updated limits:
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- Capital Market: Rs 5 lakh per transaction, Rs 10 lakh per day
- Insurance: Rs 5 lakh per transaction, Rs 10 lakh per day
- Government E-marketplace (EMD): Rs 5 lakh per transaction, Rs 10 lakh per day
- Travel: Rs 5 lakh per transaction, Rs 10 lakh per day
- Credit Card Bill Payments: Rs 5 lakh per transaction, Rs 6 lakh per day
- Collections: Rs 5 lakh per transaction, Rs 10 lakh per day
- Business/Merchant (including Pre-approved): Rs 5 lakh per transaction
- Jewellery: Rs 2 lakh per transaction, Rs 6 lakh per day
- FX Retail (BBPS Platform): Rs 5 lakh per transaction, Rs 5 lakh per day
- Digital Account Opening (Term Deposits): Rs 5 lakh per transaction, Rs 5 lakh per day
- Digital Account Opening (Initial Funding): Rs 2 lakh per transaction, Rs 2 lakh per day
Banks must ensure compliance with NPCI guidelines for these limits. They can set internal limits within NPCI’s ceilings.
Impact On Merchants And Banks
The raised UPI limits simplify high-value transactions for verified merchants. Businesses in travel, jewellery, and insurance sectors benefit the most. Banks must update systems by September 15 to align with these rules. This move strengthens India’s digital payment ecosystem.
| Category | Per Transaction Limit | Daily Limit |
|---|---|---|
| Capital Market | Rs 5 lakh | Rs10 lakh |
| Insurance | Rs 5 lakh | Rs 10 lakh |
| Government E-marketplace (EMD) | Rs 5 lakh | Rs 10 lakh |
| Travel | Rs 5 lakh | Rs 10 lakh |
| Credit Card Bill Payments | Rs 5 lakh | Rs 6 lakh |
| Collections | Rs 5 lakh | Rs 10 lakh |
| Business/Merchant (Pre-approved) | Rs 5 lakh | – |
| Jewellery | Rs 2 lakh | Rs 6 lakh |
| FX Retail (BBPS Platform) | Rs 5 lakh | Rs 5 lakh |
| Digital Account Opening (Term Deposits) | Rs 5 lakh | Rs 5 lakh |
| Digital Account Opening (Initial Funding) | Rs 2 lakh | Rs 2 lakh |
This update makes UPI more flexible for merchants and boosts digital payments across India.
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