Investors Can Use UPI Apps for Mutual Fund and Insurance Investments Up to ₹10 Lakh

From September 15, 2025, investors can use UPI apps to invest up to ₹10,00,000 in mutual funds and insurance policies, thanks to NPCI's updated transaction limits aimed at boosting digital investments across high-value sectors.

New UPI Limits Enhance Investment Convenience

The National Payments Corporation of India (NPCI) has made digital investment more accessible by raising the daily transaction cap for capital markets and insurance to ₹10,00,000 with a per-transaction limit of ₹5,00,000 through UPI. 

This implies that investors can make two separate transactions of ₹5,00,000 each in a day, easing the process for lump-sum investments and premium payments. These new limits come into effect on September 15, 2025.

Increased Limits for Various Categories

The enhanced UPI limits now cover multiple sectors:

• Capital Market (including mutual funds): ₹5,00,000 per transaction, ₹10,00,000 daily
• Insurance Payments: ₹5,00,000 per transaction, ₹10,00,000 daily
• Government e-Marketplace and Travel: ₹10,00,000 daily
• Credit Card Bill Payments: ₹5,00,000 per transaction, ₹6,00,000 daily
• Digital Account Opening for Term Deposits: ₹5,00,000 per transaction and per day

These upgraded thresholds are expected to simplify high-value transactions without the complexities of RTGS or net banking methods.

Read More: SEBI Approves Key Reforms to Boost Investor Protection and Inclusion in Mutual Funds!

Impact on Mutual Fund and Insurance Transactions

For investors, this means faster and more flexible access to mutual funds, NPS, and stock markets, especially for those who rely on digital platforms. Similarly, policyholders can now pay large insurance premiums instantly via UPI, reducing the need for cheques or NEFT. Investors can use these changes to facilitate broader and quicker customer onboarding and support higher ticket-size investments efficiently.

Conclusion

The revised UPI limits introduced by NPCI mark a milestone in simplifying high-value financial transactions. Investors can now directly invest or pay up to ₹10,00,000 daily in mutual funds and insurance products, promoting faster digital adoption and enhancing investor experience without institutional banking barriers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.