New Delhi — In a move aimed at making digital transactions more seamless, the National Payments Corporation of India (NPCI) has implemented new rules for the Unified Payments Interface (UPI). The changes, effective September 15, are designed to ease payments in critical sectors such as insurance, investments, travel and loan repayments.
Higher Flexibility for Large Transactions
The daily limit for Person-to-Merchant (P2M) transactions has now been raised to ₹10 lakh, addressing long-standing complaints from consumers who often struggled with payment caps.
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Sector-Specific Adjustments
- Insurance & Investments: The per-transaction cap has been increased from ₹2 lakh to ₹5 lakh, though the daily ceiling remains ₹10 lakh.
- Government Payments & GeM Portal: Payments on the Government e-Marketplace platform can now go up to ₹5 lakh per transaction (previously ₹1 lakh), covering taxes and earnest money deposits.
- Travel Sector: The limit has been raised from ₹1 lakh to ₹5 lakh per transaction, with an overall daily cap of ₹10 lakh.
- Credit Card Bills & Loan EMIs: Users can now pay credit card dues up to ₹5 lakh in a single transaction, though the 24-hour cap is set at ₹6 lakh. For loans and EMIs, the new ceiling is ₹5 lakh per transaction and ₹10 lakh per day.
- Jewellery & Banking Services: Jewellery purchases via UPI can now go up to ₹2 lakh per transaction, with a daily cap of ₹6 lakh. Banking services such as term deposits will allow ₹5 lakh per transaction.
What Remains Unchanged
For Person-to-Person (P2P) transfers, the daily limit stays the same at ₹1 lakh.
Expert Commentary
Financial technology analysts have hailed the move as a significant step toward making digital payments more flexible and consumer-friendly.
But Professor Triveni Singh, a former IPS officer and cybercrime expert, cautioned against potential risks.
“Higher transaction limits will certainly benefit consumers, but they also create new opportunities for fraudsters. The bigger the transaction, the greater the need for vigilance,” he said.
He further warned, “Users must avoid clicking on suspicious links, refrain from accepting payment requests from unknown numbers, and ensure that sensitive financial information is shared only on official apps and websites. At the same time, banks and regulators must strengthen fraud monitoring systems to keep pace with these changes.”
The Bigger Picture
The revised UPI rules mark a major evolution in India’s digital payments ecosystem. While they promise greater freedom and convenience, they also bring heightened cybersecurity challenges. Experts agree that the future of India’s digital economy will depend on striking the right balance between innovation and security.