UPI Transaction Limits for Special Merchants to Increase from September 15: All You Need to Know
UPI Transaction Limits: The National Payments Corporation of India (NPCI) has announced a major change to the Unified Payments Interface (UPI) system. Starting September 15, 2025, verified merchants in select categories will be allowed to process higher-value UPI transactions, making digital payments even more seamless.
Under the new guidelines, eligible merchants can now accept UPI payments up to ₹5 lakh per transaction, depending on their sector. The move comes as UPI continues to dominate India’s digital payments landscape, crossing 20 billion transactions in August 2025, worth over ₹25 lakh crore.
Higher UPI Limits from September 15
According to an NPCI circular issued on August 28, 2025, the increased UPI limits will apply to multiple categories, but only for verified merchants who comply with NPCI’s guidelines.
Acquiring member banks will be responsible for enabling these enhanced limits. However, banks will have the right to set their own internal ceilings within the NPCI-prescribed range.
Updated UPI Transaction Limits by Category
₹5 Lakh Per Transaction
The following sectors can process UPI payments of up to ₹5 lakh per transaction:
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Capital markets
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Insurance
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Government e-Marketplace (GeM)
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Travel bookings
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Credit card bill payments
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Collections and business/merchant payments (including pre-approved payments)
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Foreign exchange retail transactions via BBPS
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Digital account openings for term deposits
₹2 Lakh Per Transaction
A transaction limit of ₹2 lakh will apply to:
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Jewellery purchases
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Digital account openings for initial funding
Cumulative UPI Limits
In addition to per-transaction limits, NPCI has also set cumulative limits for specific categories:
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Capital markets, insurance, travel, collections, and government e-marketplace: ₹10 lakh cumulative limit
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Credit card bill payments: ₹6 lakh cumulative limit
These measures are designed to maintain security while allowing users and merchants greater flexibility for high-value UPI transactions.
Implementation and Compliance
NPCI has directed all banks, payment apps, and service providers to update their systems by September 15, 2025 to comply with the new transaction limits.
This update reflects the rapid evolution of India’s digital payment ecosystem. UPI’s record-breaking 20 billion transactions in August 2025 demonstrates its growing importance in everyday payments, business transactions, and high-value purchases.
Key Takeaway
From September 15, 2025, verified merchants in several sectors will benefit from higher UPI transaction limits — up to ₹5 lakh per transaction for select categories and ₹2 lakh for others.
With UPI crossing ₹25 lakh crore in monthly transaction value, this move strengthens India’s position as a global leader in digital payments while giving merchants and consumers more flexibility for big-ticket purchases.
