Business News: UPI Raises Daily Merchant Payment Limit to Rs 10 Lakh from September 15

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India’s Unified Payments Interface (UPI) will increase its daily payment limit for merchant transactions to Rs 10 lakh from September 15, officials announced. The move is expected to ease transactions for businesses and customers who often faced restrictions due to existing lower limits.

Until now, UPI users had to split large payments into smaller transactions or rely on traditional methods like cheques and bank transfers. These practices often created delays and inconvenience for businesses handling high-value transactions. The new limit aims to solve this long-standing issue and further strengthen India’s digital economy.

New Transaction Cap for Merchants

With the revised rules, verified merchants in select categories will now be able to receive payments of up to Rs 10 lakh in 24 hours. The increase applies specifically to person-to-merchant (P2M) transactions, which are widely used by retail businesses, service providers, and large vendors.

Person-to-Person Transfers Remain Unchanged

Officials clarified that the person-to-person (P2P) transfer limit will continue to be capped at Rs 1 lakh per day. This ensures that while businesses gain higher flexibility, regular users continue to operate under existing safety caps to prevent misuse or fraud.

UPI has become one of the most successful digital payment systems in the world, processing billions of transactions every month. By raising the transaction limit, the government and the National Payments Corporation of India (NPCI) are aiming to encourage wider adoption of digital payments, reduce dependency on cash, and promote faster, safer transactions for high-value purchases.

Impact on Businesses and Consumers

The revised limit is likely to benefit industries such as healthcare, education, travel, and high-value retail, where large transactions are common. For consumers, the change provides greater convenience, eliminating the need for multiple payments for a single purchase.