UPI Rule Changing from Today, with Higher Transaction Limits for Insurance, Loans, Travel

The National Payments Corporation of India (NPCI) has rolled out new UPI rule changes to increase transaction limits across critical sectors like insurance payments, loan EMIs, travel bookings, investment platforms, and government services. Effective from September 15, 2025, these updates are aimed at enhancing the user experience and promoting cashless transactions, making it easier for consumers and businesses to transact in a seamless and secure manner.

Higher Payment Limits for Greater Flexibility

The daily Person-to-Merchant (P2M) limit has been raised to ₹10 lakh, addressing concerns around payment caps and enabling high-value transactions. This change is particularly beneficial for sectors requiring larger sums, such as real estate payments, education fees, and medical expenses.

Insurance & Investments: The per-transaction limit has increased from ₹2 lakh to ₹5 lakh, helping customers make premium payments and investment contributions more easily.

Travel Bookings: Payments for flights, hotels, and holiday packages are now capped at ₹5 lakh per transaction, with a daily cap of ₹10 lakh.

Government Payments & GeM Portal: Transactions such as tax payments, bids, and tender deposits can now reach ₹5 lakh per transaction, up from ₹1 lakh.

Loans & Credit Cards: Consumers can now pay credit card bills and loan EMIs up to ₹5 lakh per transaction, improving access to digital loan repayment options.

Jewellery & Banking Services: Jewellery purchases can go up to ₹2 lakh, while term deposits and other banking services now support payments up to ₹5 lakh.

Security Concerns & Cybercrime Risks

While fintech experts celebrate the move as a leap toward financial inclusion, cybersecurity specialists warn of potential threats. Professor Triveni Singh, a former IPS officer and cybercrime expert, highlighted that larger transaction limits could attract fraudsters. She urged users to stay vigilant by using official UPI apps, avoiding unknown payment requests, and reporting suspicious activity.

A Step Toward a Cashless Economy

These revised UPI rules align with India’s vision for a digital-first economy, empowering citizens with faster payments, convenient access to services, and reduced reliance on cash. At the same time, strengthening fraud prevention tools and enhancing user awareness campaigns will be key to ensuring a secure and robust digital infrastructure.

For more details on UPI transaction limits, secure payments, and fintech solutions in India, visit the official NPCI portal or trusted financial platforms offering UPI services. This regulatory update is set to reshape digital banking, mobile wallets, and online payment trends across the country.