UPI Daily Payment Limit Raised to ₹10 Lakh for Select Transactions; P2P Collect Feature to End from October
NPCI raises UPI daily payment limit to ₹10 lakh for investments, insurance, and more, while scrapping the P2P collect feature from October to curb fraud.
NPCI raises UPI daily payment limit to ₹10 lakh for select categories while discontinuing the P2P collect feature to curb fraud.
The National Payments Corporation of India (NPCI) has raised the daily UPI payment limit to ₹10 lakh for select high-value categories, including investments, insurance, travel, and loan repayments. At the same time, NPCI announced that the Person-to-Person (P2P) “collect request” feature will be discontinued from October 1 to curb fraud.
Higher Limits for Verified Merchants
According to NPCI’s latest circular, the increased limits will apply only to Person-to-Merchant (P2M) payments made to verified businesses. For capital markets and insurance, the per-transaction cap has been doubled from ₹2 lakh to ₹5 lakh, while the daily ceiling rises to ₹10 lakh.
Key changes include:
- Investments & insurance: ₹5 lakh per transaction, ₹10 lakh daily cap.
- Credit card bill payments: Raised to ₹5 lakh per transaction (from ₹2 lakh); daily limit ₹6 lakh (from ₹5 lakh).
- Jewellery purchases: ₹2 lakh per transaction, daily limit raised to ₹6 lakh.
- Government marketplace, travel, loan repayments, EMIs: New daily limit of ₹10 lakh.
- Hospitals & education: Already raised to ₹10 lakh daily earlier; unchanged now.
- Government securities (RBI Direct): Daily limit of ₹10 lakh.
P2P transfers between individuals remain capped at ₹1 lakh per day.
P2P Collect Requests to Be Scrapped
From October 1, 2025, users will no longer be able to send or receive UPI collect requests. Payments must instead be made via QR code scanning or UPI ID entry. NPCI said the decision was taken to prevent fraudsters from tricking users with fake reward and cashback requests.
Balancing Convenience and Security
Industry experts have welcomed the move, saying higher limits will encourage faster high-value digital transactions while keeping fraud risks in check.
“It’s reassuring that the higher limits apply only to select merchants. This will ease business payments and reduce reliance on cheques without raising fraud risks,” said Samit Singh, ex-banker and founder of Happy Retirement.
However, experts also noted that sectors like real estate and automobile purchases could be considered for inclusion in the future.
The changes highlight UPI’s growing role as not just a daily payment tool, but also a platform for large financial transactions — from bill payments to investments — while tightening safeguards for ordinary users.
