The Unified Payments Interface (UPI) has reshaped the way millions of Indians send and receive money. In 2025, regulators introduced several key updates to strengthen security, boost inclusion, and meet evolving user needs.
This blog will walk you through the new UPI rules for 2025 in simple terms. We’ll cover daily limits, transaction rules, feature-phone services, security guidelines, and more. By the end, you’ll know exactly how the changes affect your day-to-day payments.
What is UPI Daily Limit?
The daily cap on UPI transactions remains ₹1,00,000 per user. You can split this amount across up to 20 transactions in a single day. This limit applies to both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments under standard use cases.
| Transaction Type | Daily Limit | Max Transactions (per day) |
|---|---|---|
| P2P & P2M | ₹1,00,000 | 20 |
Per-Transaction Limits
UPI 123Pay (Feature-Phone Users)
- Per-Tx Limit: ₹10,000 (up from ₹5,000)
- Compliance Deadline: January 1, 2025
- Initiation Modes: IVR, missed calls, OEM apps, sound-based transfers
These changes make high-value payments easier for users without smartphones.
What is UPI Lite (Offline & Small Payments)?
- Wallet Balance Limit: ₹5,000 (up from ₹2,000)
- Per-Tx Threshold: ₹1,000 (up from ₹500)
- PIN-Free Payments: Allowed up to the threshold to speed up small buys
The upgrade lets you pay for small items faster, without entering your PIN each time.
Weekly & Monthly Limits
While the NPCI sets standard daily limits, some banks impose additional caps:
- Weekly Caps: Certain banks (e.g., IDFC) may limit weekly transfers to ₹1,00,000.
- Monthly Caps: A few banks set monthly ceilings (e.g., ₹30,00,000).
Always check with your bank’s UPI policy.
Higher Sector-Specific Limits
For select use cases, NPCI allows raised limits:
| Use Case | Daily Cap |
|---|---|
| Tax payments, Education, Healthcare | ₹5,00,000 |
| Capital Markets, Insurance | ₹2,00,000 |
| IPO Applications, RBI Retail Schemes | ₹5,00,000 |
These exceptions let you handle large, vital payments—like school fees or IPO bids—without splitting transactions.
NPCI’s Discretion on Limits
Going forward, NPCI may adjust caps based on new needs. Banks retain the right to set their own internal limits within NPCI’s framework. P2P payments will continue to cap at ₹1,00,000 unless NPCI announces otherwise.
Mobile Number Management
To curb fraud and errors, regulators now require:
- Weekly Updates: Banks and PSPs must sync mobile-number records every week.
- Explicit Consent: Users must opt in before linking (seeding) their mobile numbers to UPI.
- ID Deactivation: UPI IDs tied to inactive numbers become inactive after March 31, 2025.
These steps boost data accuracy and give you control over which number you use.
Local Resolution & Reporting
If NPCI’s system delays a UPI-number lookup, apps may resolve numbers locally but must:
- Report Monthly: Send NPCI details of any local resolutions.
- Maintain Logs: Keep transparent records to improve system reliability.
This rule ensures quick payments without sacrificing oversight.
Security Measures for High-Value Transactions
With higher caps, the RBI and NPCI add extra safeguards:
- Two-Factor Authentication: Additional OTP or PIN prompts.
- Biometric Checks: Fingerprint or face scans for amounts above specified thresholds.
- Real-Time Fraud Monitoring: Systems flag unusual patterns instantly.
These steps maintain trust in UPI’s simplicity and safety
UPI 123Pay: Deep Dive
For users without smartphones, UPI 123Pay offers four modes:
- IVR Calls: Dial a number, follow voice prompts.
- Missed Calls: Ring and hang up to trigger payment.
- Feature-Phone Apps: Pre-installed apps on select handsets.
- Sound-Based Tech: Use proximity audio for transfers.
You authenticate with your UPI PIN or Aadhaar OTP. This innovation reaches remote areas and bolsters inclusion.
UPI Lite: Fast Small-Value Payments
UPI Lite lives on your phone as a digital wallet. You load it once, then pay up to ₹1,000 instantly—no PIN needed. It’s ideal for street vendors, tea stalls, and transit fares. You treat it like cash in digital form.
Cross-Border & New Use Cases
UPI has started pilot programs abroad, letting NRIs and tourists pay with Indian UPI apps. NPCI may tailor limits for foreign transactions as use grows. This step paves the way for a global UPI footprint.
Market Share Cap Delay
NPCI had planned to limit any single app’s UPI share to 30% by end-2024. Regulators delayed this rule until end of December 2026. This extra time lets smaller players expand fairly.
What It Means for You
- Everyday Users: Enjoy faster small payments (UPI Lite) and seamless feature-phone access (123Pay).
- Small Businesses: Handle bulk orders via increased per-transaction and sector-specific limits.
- Financial Institutions: Update apps and train staff for weekly mobile number syncs and new consent flows.
- Merchants: Prepare for local resolution reporting and tighter fraud checks on large sales.
Overall, the 2025 updates aim to keep UPI simple, safe, and inclusive—no matter what phone you use.
Conclusion
UPI’s new rules in 2025 strike a balance between user convenience, financial inclusion, and robust security. From ₹1,00,000 daily caps to ₹10,000 feature-phone transactions, and from weekly mobile-record syncs to biometric checks, the framework seeks to serve every Indian. Stay informed, opt in for consent, and enjoy digital payments that grow with your needs.