NPCI raises UPI limits for capital markets and other merchant transactions

Mumbai: The National Payments Corporation of India has raised UPI payment ceilings for capital market transactions to Rs 5 lakh per payment and Rs 10 lakh daily, extending similar limits to several other merchant categories as demand for high-value digital transfers rises.The changes build on an earlier circular that allowed tax payments of up to Rs 5 lakh. The new framework applies only to merchant payments, leaving peer-to-peer transfers under existing rules. Only verified merchants are eligible, and acquiring banks must ensure compliance before offering higher limits.While NPCI has set the ceilings, member banks may adopt stricter internal caps. All banks, apps, and payment service providers on the UPI network must implement the revised framework by Sept 15, 2025.Other categories covered include insurance, govt e-marketplace, travel, collections, and credit card bill payments. Most of these have been given transaction caps of Rs 5 lakh and daily limits of Rs 10 lakh, though credit card bill payments have a lower daily ceiling of Rs 6 lakh. Jewellery purchases have been capped at Rs 2 lakh per payment and Rs 6 lakh daily. FX retail transactions routed through the BBPS platform and digital account openings for term deposits both carry Rs 5 lakh caps, while initial funding of new accounts is limited to Rs 2 lakh.Issuing banks will remain responsible for enforcing cumulative daily limits.