NPCI's Big Move: UPI Cash Withdrawal Limit Raised to ₹10 Lakh and Daily Transaction Cap Increased

The National Payments Corporation of India (NPCI) has introduced a major upgrade to the Unified Payments Interface (UPI) ecosystem, enabling users to withdraw cash and make payments of up to ₹10 lakh through UPI. This development marks a significant leap in India’s digital payment framework, offering greater convenience and flexibility to millions of users.

UPI-Based Cash Withdrawal to Become Easier

Until now, cash withdrawals using UPI were restricted to small amounts. Currently, urban users can withdraw up to ₹1,000 per transaction and rural users up to ₹2,000, with slightly higher limits at Business Correspondent (BC) outlets. But NPCI is now working to allow much larger cash withdrawals directly via UPI QR codes, eliminating the need for debit cards or biometric authentication.

Under the new system, customers can simply scan a QR code displayed at a BC outlet, grocery store, or mobile shop using any UPI-enabled app, enter their UPI PIN, and withdraw cash. Business Correspondents are local banking agents authorized to provide basic banking services and are already equipped with micro-ATMs, biometric devices, and QR scanners.

Daily UPI Transaction Limit Raised to ₹1 Lakh

Alongside cash withdrawals, NPCI has also increased the daily UPI transaction limit to ₹1 lakh, effective 15 September 2025. This enhancement is particularly useful for high-value payments such as insurance premiums, investment transfers, and big-ticket purchases.

NPCI has sought approval from the Reserve Bank of India (RBI) to roll out the new cash withdrawal feature nationwide. Banks will need to adopt upgraded technology and follow new guidelines to enable secure, high-value UPI withdrawals.

Key Highlights of the New Facility

• Cash Withdrawal via QR: Customers can withdraw cash at BC outlets using a UPI app without a debit card or Aadhaar authentication.

• Higher Limits: UPI transaction limit raised to ₹1 lakh per day, with plans to enable withdrawals up to ₹10 lakh in select cases once fully approved.

• Wider Access: Business Correspondents, including neighborhood shops, will play a key role in offering this service, ensuring cash availability even in areas with limited banking infrastructure.

Impact on Consumers and Businesses

This move is expected to reduce dependence on ATMs and simplify cash access in both urban and rural regions. For consumers, it means faster, card-free cash withdrawals, while small businesses acting as BCs will benefit from increased foot traffic and service revenue.

As NPCI and RBI finalize the regulatory framework, banks will gradually integrate this technology into their UPI platforms. Once fully implemented, this upgrade will make UPI not just a digital payment system but also a virtual ATM network, revolutionizing cash management across India.