Starting September 15, UPI raises daily P2M payment limit to Rs 10 lakh

The National Payments Corporation of India (NPCI) has announced increased transaction limits for Person-to-Merchant (P2M) payments effective September 15, thus facilitating larger payments in key sectors. This will make digital transactions more seamless for high-value purchases while maintaining security protocols. Users will be able to execute a transaction of up to Rs 10 lakh in 24 hours for specific, verified merchant categories. The limit for Person-to-Person limit remains unchanged at Rs 1 lakh per day.

The revision addresses a longstanding challenge in categories where users often encountered restrictions, forcing them to split payments or revert to traditional methods like cheques or bank transfers.

For instance, in capital market investments and insurance payments, the per-transaction limit has been hiked from Rs 2 lakh to Rs 5 lakh, with a daily maximum of Rs 10 lakh.

Similarly, on the Government e-Marketplace (GEM portal) - including earnest money deposits and tax payments - up to Rs 5 lakh per transaction is allowed, up from the previous Rs 1 lakh ceiling. The travel sector will see a substantial upgrade, with transaction limit rising from Rs 1 lakh to Rs 5 lakh, complemented by a Rs 10 lakh daily cap.

Credit card bill payments too are permitted for up to Rs 5 lakh in a single transaction, though the 24-hour limit is set at Rs 6 lakh. For loan and EMI collections, users can now pay Rs 5 lakh per transaction with a daily total of Rs 10 lakh.

Jewellery purchases received a more modest boost, with the UPI limit increased from Rs 1 lakh to Rs 2 lakh per transaction and Rs 6 lakh per day. Additionally, banking services like term deposits through digital onboarding are now capped at Rs 5 lakh both per transaction and per day, compared to the earlier Rs 2 lakh.