The National Payments Corporation of India (NPCI) has announced important updates to Unified Payments Interface (UPI) transaction limits and payment features. Effective September 15, 2025, daily and per-transaction limits for select high-value Person-to-Merchant (P2M) payments have been raised. Additionally, as of October 1, 2025, the P2P “collect request” feature will be discontinued to enhance security and prevent fraud.
Higher Limits for High-Value Transactions
UPI users can now make larger transactions for verified merchants across key sectors:
| Category | Per Transaction Limit | Daily Limit | Notes |
|---|---|---|---|
| Capital Markets (Investments) | ₹5 lakh | ₹10 lakh | Effective Sep 15, 2025 |
| Insurance | ₹5 lakh | ₹10 lakh | Effective Sep 15, 2025 |
| Government e-Marketplace (GeM) | ₹5 lakh | ₹10 lakh | Effective Sep 15, 2025 |
| Travel, Loan Repayments, EMIs | ₹5 lakh | ₹10 lakh | Effective Sep 15, 2025 |
| Credit Card Payments | ₹5 lakh | ₹6 lakh | Effective Sep 15, 2025 |
| Jewellery | ₹2 lakh | ₹6 lakh | Effective Sep 15, 2025 |
| Hospital & Education | ₹5 lakh | ₹10 lakh | Unchanged |
| Person-to-Person (P2P) | ₹1 lakh | ₹1 lakh | Unchanged |
These changes enable seamless, high-value payments without splitting transactions, while banks retain the discretion to set lower limits based on risk assessment.
Discontinuation of P2P Collect Requests
From October 1, 2025, UPI apps such as PhonePe, Google Pay, and Paytm will disable the P2P collect request feature. Users will no longer be able to request money directly from another individual.
Merchant collect requests for e-commerce, bills, and other business transactions will continue unchanged.
The change comes in response to rising fraud incidents, where tricksters misuse the collect request feature for unauthorized collections.
Industry Perspective
Experts believe these measures will:
- Enhance UPI as a robust platform for both high-value and everyday payments
- Reduce reliance on cheques and slower payment methods
- Improve security, reliability, and efficiency of digital transactions
NPCI may consider extending higher transaction limits to sectors like real estate and automobiles in the future. Banks, PSPs, and UPI app providers are mandated to implement these changes within the specified timelines.
Conclusion
The updated UPI limits and feature changes mark a significant step toward safer, faster, and higher-value digital payments in India. Users can now make high-value transactions with confidence, while the discontinuation of P2P collect requests protects them from fraud. These changes underline India’s commitment to digital financial inclusion, efficiency, and robust payment systems.
