Mumbai, Sep 15: The National Payments Corporation of India (NPCI) has officially raised the transaction limits for Unified Payments Interface (UPI) person-to-merchant (P2M) payments to a maximum of Rs 10 lakh within a 24-hour period for certain categories, starting Monday.

This initiative aims to support larger transactions in critical sectors and promote the adoption of digital payments in high-value areas. Meanwhile, the limit for person-to-person (P2P) transactions remains unchanged at Rs 1 lakh per day.

Previously, users faced limitations that often required them to split payments or revert to traditional payment methods like cheques or bank transfers.

With the new guidelines, the limit for capital market and insurance payments has been increased from Rs 2 lakh to Rs 5 lakh per transaction, with a daily cap of Rs 10 lakh.

The transaction limit for the Government e-Marketplace, which includes earnest money deposits and taxes, has also been raised to Rs 5 lakh per transaction from the previous Rs 1 lakh. Additionally, limits for travel bookings, loan repayments, and EMI collections have been elevated to Rs 5 lakh from Rs 1 lakh.

Credit card bill payments can now be made for amounts up to Rs 5 lakh in a single transaction, although the total limit for 24 hours is set at Rs 6 lakh.

For loan and EMI collections, users can now transact Rs 5 lakh per transaction with a daily limit of Rs 10 lakh.

Jewellery purchases have also seen an increase, with the UPI limit raised from Rs 1 lakh to Rs 2 lakh per transaction and Rs 6 lakh per day. Furthermore, banking services like term deposits through digital onboarding are now capped at Rs 5 lakh for both per transaction and daily limits, up from Rs 2 lakh.

Industry leaders and fintech companies have welcomed these changes, viewing them as advantageous for both businesses and consumers. The higher limits address a significant challenge in sectors such as insurance, investments, and travel, where customers previously had to split their transactions.

Now, individuals can conveniently pay insurance premiums or renew policies in a single transaction, which enhances policy servicing and boosts customer satisfaction.

Importantly, the increased UPI transaction limits apply only to verified merchants, adding an extra layer of security and fostering trust among users.

Industry experts have highlighted that enhanced security measures, including mandatory multi-factor authentication and stricter merchant vetting, will support these increased limits. NPCI has stated that eligible users will automatically benefit from these changes without needing to take any additional steps.