UPI raises daily P2M payment limit to Rs 10 lakh from September 15.
Major Problem solved by Govt
Earlier, people had to split payments or switch to cheques and bank transfers because of low limits. âš¡
Now, users can make transactions of up to ₹10 lakh in 24 hours for select & verified merchant categories.
P2P (person-to-person) transfer limit will stay the same at ₹1 lakh per day ⚡
The National Payments Corporation of India (NPCI) has announced an increase in the daily limit for Person-to-Merchant (P2M) UPI payments to ₹10 lakh in certain sectors. This change is effective from September 15, 2025.
What is a P2M payment?
A P2M (Person-to-Merchant) payment is a UPI transaction made by a customer to a business or service provider for goods and services. This is different from a P2P (Person-to-Person) payment, which is a transfer of money between two individuals. The daily limit for P2P transactions remains unchanged at ₹1 lakh.
Key highlights of the new limit:
- Daily aggregate limit: The new daily limit is an aggregate of up to ₹10 lakh for transactions to verified merchants in specific categories.
- Per-transaction limits: While the daily cap is ₹10 lakh, the per-transaction limit varies by sector:
- ₹5 lakh:
- Capital markets (investments)
- Insurance
- Government e-Marketplace (GeM) for earnest money deposits and tax payments
- Travel
- Collections (e.g., loan repayments, EMIs)
- Credit card bill payments (daily aggregate limit of ₹6 lakh)
- Digital account opening for term deposits
- FX Retail use cases
- ₹2 lakh:
- Jewellery purchases
- ₹5 lakh:
- Purpose: This move is aimed at facilitating larger commercial payments and making high-value digital transactions more convenient and seamless for users in these sectors.
- Implementation: All banks, UPI apps, and Payment Service Providers (PSPs) are required to implement these enhanced limits. However, member banks still have the discretion to set their own internal limits within the overall ceilings prescribed by NPCI.