New Delhi: From today, India’s Unified Payments Interface (UPI) system undergoes one of its most significant upgrades, allowing much larger digital transactions across several key sectors. The National Payments Corporation of India (NPCI) has officially raised the transaction ceilings for categories such as jewellery, insurance, capital markets, government services, and credit card bill payments, making UPI a more powerful tool for high-value commerce.
Until now, UPI was viewed mainly as a platform for small and medium-sized payments — from groceries and dining bills to utility charges. But the new framework signals a major shift. Customers can now make large-value purchases without splitting payments into multiple transactions or switching to traditional bank transfers. For jewellery alone, the per-transaction limit has been revised from ₹1 lakh to ₹2 lakh, while buyers can spend up to ₹6 lakh in a single day on gold and ornaments using UPI.
The new rules extend well beyond jewellery. Payments for insurance premiums, investments in capital markets, government tax deposits, and travel bookings are now permitted up to ₹5 lakh per transaction, with a daily ceiling of ₹10 lakh. This change is expected to significantly ease high-value financial transactions, particularly for individuals managing large insurance policies or participating in market-linked schemes.
Credit card holders, too, will see relief as bill payments via UPI are now capped at ₹5 lakh per transaction, though the overall limit for a 24-hour period has been set at ₹6 lakh. Analysts say this update could lead to a surge in digital settlement of credit card dues, reducing dependence on NEFT, RTGS, or cheque payments.
According to industry observers, the step aligns with the government’s vision of a cash-light economy. By lifting restrictions, NPCI is encouraging more businesses and individuals to embrace UPI for everyday as well as high-value needs. Retailers, jewellers, travel agencies, and insurance providers are expected to benefit directly, as customers can now complete large purchases in one seamless transaction.
The increased limits also carry wider economic implications. They could accelerate digital penetration in traditionally cash-heavy segments like jewellery trade and provide additional momentum to capital market participation through easy UPI-based investments.
However, authorities have also stressed that the higher limits apply only to verified merchants, ensuring a safeguard against fraud and misuse. This means businesses will need to complete strict verification processes to qualify for the upgraded transaction caps. For individuals, person-to-person (P2P) transfers remain capped at ₹1 lakh per day, unchanged from earlier.
Experts caution that while the move boosts convenience, it also brings new challenges. Banks and UPI apps will have to strengthen security and monitoring systems to handle potential risks tied to larger digital flows. Users, too, are being urged to remain vigilant and transact only with verified merchants to ensure safety.
The changes, effective from September 15, represent another milestone in UPI’s evolution from a small-value payment system to a comprehensive digital finance infrastructure. As banks and UPI apps implement the higher limits, the real test will be whether the new rules can deliver seamless large-value payments without technical glitches or security concerns.
For millions of Indians, today’s revision signals a future where buying jewellery, paying hefty insurance premiums, booking international travel, or settling large bills could be as simple as scanning a QR code.