From September 15, UPI P2M Payment Limit Increased to Rs 10 Lakh

The National Payments Corporation of India (NPCI) on Thursday released a major revision of the Unified Payments Interface (UPI) Person-to-Merchant (P2M) limits, effective from September 15.

The revision will make high-value digital payments convenient for the users without being negligent of security.

As per the new guidelines, customers are now able to make P2M transactions of up to Rs 10 lakh a day for specific verified merchant categories.

The limit for Person-to-Person (P2P) transfers, however, is still Rs 1 lakh per day.

The step will benefit businesses where clients had no option but to make big payments, usually splitting the transaction or using conventional modes like cheques and bank transfers.

For investments in the capital market and insurance, the limit per transaction has been increased from Rs 2 lakh to Rs 5 lakh with a Rs 10 lakh ceiling per day.

On the Government e-Marketplace (GeM portal), for payments towards taxes as well as earnest money deposits, the limit has been raised from Rs 1 lakh to Rs 5 lakh per transaction.

The tourism industry has also gained, with transaction ceilings now Rs 5 lakh and a limit of Rs 10 lakh per day.

Bill payments against credit cards can be made Rs 5 lakh per transaction, and the combined daily limit is Rs 6 lakh.

For repayment of loans and EMI collections, the new limit can be Rs 5 lakh per transaction and Rs 10 lakh per day.

Jewellery buying can now amount to Rs 2 lakh in one transaction, from the earlier Rs 1 lakh, and Rs 6 lakh as a limit per day.

Banking facilities, including term deposits via digitalboarding, also have their limits increased to Rs 5 lakh per transaction and Rs 5 lakh per day, compared to Rs 2 lakh previously.

NPCI said that these changes are aimed at making UPI a more useful instrument for high-value payments in priority sectors, enabling wider usage of digital transactions across India.