Introduction

The advent of Unified Interface Payments (UPI) by the National Payments Corporation of India (NPCI) in 2016 has revolutionized the way payments are made digitally. 

UPI allows multiple bank accounts to work on a single mobile application for fund transfer, merchant payments, and collections which can be scheduled and paid as per convenience. 

The safe and secure digital payment method has transformed the daily transactions for individuals and businesses.

However, there are daily limitations associated with UPI transactions. These limits vary from one bank to another. For a new UPI user, the daily transaction limit is Rs 5000 for the first 24 hours.

The daily transaction limit for UPI is Rs 1 lakh per day with an exception made for hospitals and educational institutions as they can receive Rs 5 lakh in one day.

You can send up to Rs 2 lakh via UPI for transactions like capital markets, insurance, and foreign inward remittances.

 What makes UPI unique?

The following features of UPI makes it unique:

• It allows immediate money transfer via mobile 24*7 all days of the year
• It gives access to multiple bank accounts from the same application
• It facilitates single-click payments within no time
• It enables payments using the customer’s Virtual Payment Address or VPA without adding account details like account number, IFSC code, etc.
• It eliminates the need to carry cash or dependency on ATMs for immediate payments 
• It provides a QR code (scan and pay) for payments and collections both
• It allows merchant payment with a single application or in-app payments
• It helps pay utility bills and make over-the-counter payments
• It is user-friendly and helps resolve queries on the app itself

 What Are UPI Transaction Limits?

The transfer of a specific amount via UPI from an individual to another or a business in one day is defined as a UPI transaction limit. These limits have been defined to safeguard transactions and stop the misuse of payment services.

Why is there a need for UPI Transaction Limits?

The voluminous UPI transactions that take place daily are prone to fraud and misuse. Apart from this, there are other factors like operational efficiency and regulatory compliance which add to the worries. Let us know all the factors influencing UPI transaction limits.

Security: The first and foremost reason behind UPI transaction limits is to mitigate the risk of fraud associated with these transactions. In case a user’s account details are leaked, the limits defined can reduce the financial loss. The damage can be controlled in case of unauthorized access.

Risk Management: Banks and financial institutions can lessen the financial risk by limiting the transaction amount and frequency; allowing them to monitor transactions closely and locate suspicious activities, if any.

Compliance: The concerned financial regulatory authority defines a guideline for transaction limits to ensure security. The UPI transaction limit allows banks to comply with these regulatory requirements.

Operational Efficiency: The huge amount of UPI transactions need to be managed efficiently and that load has to be controlled for these transactions to process smoothly and swiftly. 

User Protection: The UPI transaction limits protect the user from transacting huge amounts unintentionally and therefore avoiding blunders. The limits allow the user to transact securely.

Responsible Usage: Defining UPI transaction limits encourages responsible behavior and not overspending in a hasty situation.

Let us know the UPI transaction limits for a day, a week, and a month.

UPI Transaction Limit Per Day

The UPI transaction limit for a day has been defined by individual banks in the UPI network and differs from one bank to another. For example, the Axis Bank transaction limit per day is Rs 1,00,000.

UPI Transaction Limit Per Week

Certain banks have defined the amount that can be transferred via UPI weekly. For example, the IDFC allows UPI transactions of up to Rs 1,00,000 weekly.

UPI Transaction Limit Per Month

Some private banks and public banks have defined a UPI transaction limit for monthly usage. 

Follow the table below to know the UPI limit of private and public banks in India.

Apart from banks, some apps have also defined UPI transaction limits to maintain their operational efficiency and smooth functioning.

PhonePe’s UPI Limit Per Day

The PhonePe UPI transaction limit for a day is Rs. 1,00,000. A user can undertake 20 transactions in 24 hours on the PhonePe app.

Google Pay’s UPI Limit Per Day

The GPay UPI limit per day is Rs. 1,00,000 for all banks. A user must abide by the limit defined by the bank for UPI transactions.

BHIM UPI Limit Per Day

NPCI has defined a daily limit of Rs 1,00,000 for BHIM UPI apps. If the user exceeds the defined limit in a day, they can initiate additional BHIM UPI transactions the next day.

Paytm UPI Limit Per Day

Paytm UPI transactions adhere to a daily limit of Rs. 1 lakh (Rs. 100,000) for all users, with new users initially limited to Rs. 5,000 within the first 24 hours.

SBI UPI Transaction Limit Per Day

The daily transaction limit of UPI via SBI is Rs. 1,00,000. This can be done via a single transaction or multiple transactions made 10 times a day. However, there is no limit on weekly and monthly transactions via UPI.

ICICI Bank UPI Limit Per Day

The UPI limit for each transaction via ICICI bank is Rs. 1,00,000. Users can make 10 transactions in 24 hours.

Conclusion

UPI has taken over other modes of payment because of its convenience, swiftness, and transparency. Businesses prefer making payments via UPI, however, to safeguard these transactions, the defined UPI limits must be followed. 

For more understanding about UPI transaction limits, read these frequently asked questions.              

FAQs

Is it possible to transfer more than the limit if I use multiple UPI apps?

It is not possible to transfer more than the limit even if you use multiple UPI apps.

What should I do if my transaction gets blocked due to exceeding the limit?

You will not be able to make payments exceeding your limit.

Are UPI transaction limits the same for all banks?

No, UPI transaction limits are not the same for all banks. Check the list of banks in the article above to know their respective limits.

How to keep a check on the UPI transaction limit?

Follow the steps below to know your UPI transaction limit:

• Go to the UPI app in use
• Open the Profile or Settings section of the app
• Look for the UPI transaction limit option
• Your UPI transaction limit will be visible

Is it possible to change my UPI transaction limits?

The government has defined these UPI transaction limits and they cannot be changed on individual’s demands.

Is there a limit on the number of daily UPI transactions?

According to the NPCI regulations, you can make up to 20 UPI transactions within 24 hours. It is important to note that these transaction limits may vary from bank to bank.