UPI Daily P2M Payment Limit Raised to ₹10 Lakh From September 15

This is said to be the biggest update ever made to the Unified Payments Interface (UPI), immensely improving its functionality concerning high-value transactions. From September 15, transactions up to Rs 5 lakh shall be supported through UPI, with daily limits of Rs 10 lakh extended under some segments including insurance, capital markets, travel, loan repayments, and credit card bill payments.

What's New?

• P2M Limit: Increased up to Rs. 5 lakh per transaction.
• Daily Cap: Up to Rs. 10 lakh in selected segments viz., insurance premiums, investments, travel bookings, loan collections and EMI payments.
• Payment for Jewellery: Up to Rs. 2 lakh per transaction and Rs. 6 lakh per day.
• Credit Card Payments: Upto Rs. 5 lakh single transaction (RS. 6 lakh daily).
• GeM (Government e-Marketplace): Payment of earnest money deposits and taxes increased from Rs. 1 lakh to Rs. 5 lakh per transaction.
• Banking Services: Digital term deposit onboarding increased from Rs. 2 lakh to Rs. 5 lakh.

Person-to-Person transfers still remain at Rs. 1 lakh per day.

Why This Matters

This alteration would have helped users who used to face inconveniences during high-value payments by way of splitting the bills or by way of conventional instruments such as charges through cheque or wire transfer. With this alteration, the UPI is cementing its position as a solid foundation for the Indian digital payments ecosystem by offering speed, security, and convenience even for large-value transactions.

Reactions of the Experts

Akash Sinha, CEO & Co-Founder, Cashfree Payments, applauded the step as a good and timely one and elaborated that this would assist establishing businesses in high-value payments, such as IPO subscriptions, large insurance premiums, and jewellery sales, while also promoting credit backed by UPI.

Akshay Mehrotra, Co-Founder & Group CEO of Fibe, stressed the benefits of this for the consumer. Users will now be able to seamlessly make payments for their insurance premiums, capital market investments, and travel bookings while saving time and eliminating hassles.

Siddharth Mehta, Co-Founder of Kiwi, said, "Allowing higher limits only to verified merchants adds extra layers of safety and trust."

Security Enhancements

NPCI has mandated high-value payments to be protected by multi-factor authentications, real-time monitoring based on AI/ML, and strict merchant screening so that end-users may transact with safety even if higher limits are applied.

A Step Towards Financial Inclusion

Industry leaders generally agree that this enhancement would help the fast-paced high-value sectors go digital faster and hence develop UPI from being just a vehicle for small and mid-ticket payments to a highway for retail, credit, and big-ticket transactions.