UPI Limit 2025: Pay up to ₹10 Lakh a Day to Merchants

From 15 September 2025, the National Payments Corporation of India (NPCI) raised the UPI Person-to-Merchant (P2M) limit so you can pay a verified merchant up to ₹5 lakh in a single transaction and up to ₹10 lakh across the day. This is a big jump for anyone paying an insurance premium, a mutual-fund investment, or a large tax or fee collection by UPI.

If you are short on time: check the "why your app may still cap you lower" section - the new ₹10 lakh ceiling only works if your bank and payment app have also enabled it.

Until now, a ₹2 lakh insurance premium or a ₹4 lakh mutual-fund purchase forced you back to cheques, NEFT or RTGS. People split payments across days or fell back on slower channels.

NPCI raised the P2M ceiling to cut that reliance. Big, one-off payments - insurance, capital-market investments, GeM purchases, loan and fee collections - can now move on UPI in a single tap, with instant confirmation.

NPCI operates UPI under the oversight of the Reserve Bank of India (RBI). The higher limits took effect from 15 September 2025. The change is a limit revision for verified merchants, not a new product - you use the same UPI app you already have.

The ₹5 lakh / ₹10 lakh ceiling is not for every payment. It applies only to:

1. Verified merchants - businesses NPCI has verified, not random recipients.
2. In five categories: capital markets, insurance, travel, collections, and Government e-Marketplace (GeM).

If the recipient is not a verified merchant in one of those categories, the higher limit does not apply. A regular shop, a friend, or an unverified account will not unlock ₹10 lakh.

The NPCI limit is a ceiling, not a guarantee. Individual banks and payment service providers (PSPs - the apps like the ones run by your bank or a third party) can set their own lower caps based on their risk policy.

So your app may still show ₹1 lakh or ₹2 lakh even after 15 September 2025. That is allowed. To use the full ₹10 lakh:

1. Confirm your bank has enabled the higher P2M limit.
2. Confirm your UPI app shows the raised limit for that merchant category.

Note: the limit you actually get is the lower of the NPCI ceiling and your own bank/app cap. If you need to learn the bank's internal P2M limit policy, you can file an RTI with a public-sector bank or ask under its grievance process. See our guide on how UPI and digital payments work.

This is where most people go wrong.

1. P2P (Person-to-Person): sending money to another individual. Limit is ₹1 lakh a day - unchanged.
2. P2M (Person-to-Merchant): paying a verified business. Limit is now up to ₹5 lakh per transaction / ₹10 lakh a day in the five categories.

If you try to send ₹3 lakh to a friend as a P2P transfer, it will fail - the ₹10 lakh ceiling never applied to P2P. The higher limit is only for verified merchant payments.

If you want a separate pre-approved credit facility on UPI rather than your own balance, read the credit line on UPI explained.

A failed or double-debited high-value UPI payment must be resolved fast. Do this in order:

1. Screenshot everything - the UPI reference (UTR/RRN) number, amount, date, time, payer and payee.
2. Raise a complaint in the app first - every UPI app has a “Raise dispute” or “Report a transaction” option. Note the complaint number.
3. Escalate to your bank - if money was debited but not received, or debited twice, ask the bank to reverse the failed/duplicate leg.
4. Use the RBI ombudsman - if the bank does not resolve it in 30 days, escalate under the RBI Integrated Ombudsman Scheme. See our step-by-step action plan when UPI is deducted but not received.
5. If it is fraud, not a glitch, act immediately - follow our recover money after UPI fraud guide and dial 1930.

For the full citizen toolkit on enforcing your rights, see The RTI Playbook.

1. Open your UPI app and check the displayed per-transaction and daily limit for a merchant payment.
2. If it still shows ₹1 lakh, call or message your bank to confirm whether the higher P2M limit is enabled.
3. For a large insurance or mutual-fund payment, test with a small amount first to confirm the merchant is “verified.”
4. Save the UTR/RRN number of every high-value payment in case you need to dispute it later.

From 15 September 2025, NPCI raised the Person-to-Merchant (P2M) limit to up to ₹5 lakh per transaction and up to ₹10 lakh a day for verified merchants in five categories: capital markets, insurance, travel, collections and GeM. The Person-to-Person (P2P) limit is unchanged at ₹1 lakh a day.

No. The ₹10 lakh daily ceiling applies only to payments to verified merchants in the specified categories. Sending money to another individual (P2P) is still capped at ₹1 lakh a day. Paying an unverified business will not unlock the higher limit.

Because NPCI's figure is a ceiling, not a guarantee. Your bank or payment app (PSP) can set its own lower cap as per its risk policy. The limit you get is the lower of the NPCI ceiling and your bank's internal cap. Contact your bank to confirm whether the higher P2M limit is enabled for you.

No. The P2P limit stays at ₹1 lakh per day. Only the Person-to-Merchant (P2M) limit was raised, and only for verified merchants in capital markets, insurance, travel, collections and GeM.

Save the UTR/RRN number, raise a dispute in your UPI app, then escalate to your bank to reverse the failed or duplicate debit. If it is not resolved within 30 days, escalate under the RBI Integrated Ombudsman Scheme. See our UPI deducted but not received action plan.

1. NPCI (National Payments Corporation of India), revised UPI Person-to-Merchant (P2M) limits, effective 15 September 2025.
2. NPCI operates UPI under Reserve Bank of India (RBI) oversight.