UPI Limit Increased to Rs 10 Lakh: New RBI Guidelines Explained

The Reserve Bank of India (RBI) has announced a significant update that strengthens India’s digital payment ecosystem:

The UPI limit has been increased to ₹10 lakh within 24 hours for certain high-value transactions.

For years, UPI has been one of India’s biggest fintech success stories, revolutionizing digital payments with its speed, security, and accessibility.

However, until recently, UPI transfers were capped at ₹1 lakh for most transactions, and in special cases like IPO or credit card repayments,

UPI Limit Increased to Rs 10 Lakh:

the upper limit was ₹2 lakh. By raising the threshold to ₹10 lakh for specific categories, RBI has opened new possible use cases for individuals and businesses alike.

So, what does this new rule mean? Who can take advantage of the ₹10 lakh limit? And how will it change the way we pay digitally? Let’s break it down.

🔑 Why Did RBI Increase the UPI Limit?

The main goal behind the decision is to expand UPI’s role from just everyday payments (like grocery bills and peer-to-peer transfers)

payment technology

to high-value sectors like healthcare, education, and other essential services.

Earlier, when consumers needed to make payments larger than ₹1 lakh—say hospital bills, university fees, or emergency treatment expenses—they had to rely on NEFT, RTGS, or IMPS systems.

With this rule change, UPI can now directly rival these traditional banking options for high-value transactions.

This move is part of RBI’s wider strategy to:

1. Promote digital-first transactions.

2. Encourage seamless, real-time, 24×7 money transfers.

3. Increase adoption of UPI among businesses and institutions.

4. Support India’s vision of a cashless economy.

📍 Which Transactions Qualify for ₹10 Lakh UPI Limit?

As per RBI’s notification, the higher limit is not for all types of UPI payments. Instead,

it applies to specific categories where larger payments are common and essential.

Currently, these include:

• Healthcare services → Hospital bills, medical treatments, surgeries, specialist consultations, and emergency healthcare expenses.

• Educational institutions → College or university fees, coaching institute payments, exam fees, hostel charges, and donation payments to educational trusts.

This sector-specific rule ensures that UPI is used responsibly and safely without overwhelming the system or increasing fraud risk.

💡 Benefits of the New UPI Limit

The increase to ₹10 lakh has several far-reaching benefits for individuals, families, and institutions:

✅ For Individuals & Families

• Easy to pay high hospital bills without carrying cash or using cheques.

• Smooth settlement of college admission fees or annual education costs.

• Reduced dependency on NEFT/RTGS timings (UPI is 24×7 and instant).

✅ For Healthcare & Education Institutions

• Streamlined collection of fees without delays.

• Reduced banking charges compared to cards or cheques.

• Faster reconciliation, since UPI is fully digital with instant records.

✅ For the Economy

• Boost to Digital India initiative.

• Higher adoption of UPI at institutional level.

• Enhanced fintech innovation, with apps like PhonePe, Paytm, Google Pay, and banking apps integrating advanced UPI features.

⚠️ Are There Any Restrictions or Risks?

Yes. RBI has clarified that while ₹10 lakh payments are allowed, banks and PSPs (Payment Service Providers)

 may still impose additional safeguards. For example:

• Authentication layers like OTPs or biometric approvals.

• Transaction history checks for frequent high-value transfers.

• Fraud monitoring tools to detect irregular behavior.

Also, the ₹10 lakh limit is not universal yet—it only applies to the notified sectors. For most day-to-day UPI uses, the general limit of ₹1 lakh (or ₹2 lakh in special cases like IPO) continues to exist.

📊 How Does UPI Compare to NEFT & RTGS Now?

Before this change, high-value payments were dominated by traditional banking systems:

• NEFT (National Electronic Funds Transfer) → Works in half-hour batches, not instant.

• RTGS (Real Time Gross Settlement) → Meant for amounts above ₹2 lakh, but available only during banking hours.

• IMPS (Immediate Payment Service) → Instant, but capped at ₹5 lakh per transaction.

Now with UPI allowing up to ₹10 lakh, it becomes one of the most versatile payment systems—

instant, round-the-clock, and mobile-friendly. This greatly reduces the dependency on older, banking-window-based methods.

🚀 What Does It Mean for India’s Digital Future?

India’s UPI success story is already celebrated globally. From micro-payments like ₹10 tea stall bills to large online purchases, UPI is part of daily life. By extending its scope into high-value use cases, India moves a step closer toward a holistic digital ecosystem.

• It will make digital literacy and adoption stronger in semi-urban and rural areas, as even expensive services can be covered via UPI.

• Students and patients will benefit the most, experiencing a hassle-free, quick method of making essential payments.

• Globally too, this move signals India’s fintech maturity, boosting UPI’s chances of being adopted in other countries.

📝 Conclusion

The increase of the UPI limit to ₹10 lakh within 24 hours for certain transactions is a landmark reform by RBI.

By prioritizing healthcare and education payments, the regulator has ensured that UPI goes beyond just small retail transfers, making it a comprehensive digital payment backbone for India.