The introduction of the Unified Payments Interface (UPI) by the National Payments Corporation of India (NPCI) in 2016 has revolutionized the way payments are made digitally. UPI enables multiple bank accounts to be linked to a single mobile application for fund transfers, merchant payments, and scheduled collections, offering flexibility and convenience. This safe and secure digital payment method has transformed 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 ₹5,000 for the first 24 hours. The daily transaction limit for UPI is ₹1 lakh, with an exception for hospitals and educational institutions, which can receive ₹5 lakh in a day. You can send up to ₹2 lakh via UPI for transactions involving capital markets, insurance, and foreign inward remittances.

What are the features of UPI?

The following features of UPI make it unique:

• Immediate money transfer via mobile 24*7 all days of the year
• Access to multiple bank accounts from the same application
• Single-click payments within no time
• Payments using the customer’s Virtual Payment Address (VPA) without requiring details like account number or IFSC code.
• Eliminates the need to carry cash or reliance on ATMs for immediate payments.
• Provides a QR code (scan and pay) for payments and collections both
• Allows merchant payment with a single application or in-app payments
• Pay utility bills and make over-the-counter payments
• User-friendly and helps resolve queries on the app itself

What are UPI Transaction Limits?

A UPI transaction limit refers to the maximum amount that can be transferred via UPI by an individual to another person or a business in a day.

Why Are UPI Transaction Limits Necessary?

The large number of daily UPI transactions increases the risk of fraud and misuse. Additionally, factors like operational efficiency and regulatory compliance necessitate setting transaction limits.

Security

The first and foremost reason behind UPI transaction limits is to mitigate the risk of fraud associated with these transactions. In the event of account detail leaks, these limits help minimize potential financial losses. 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 large volume of UPI transactions must be efficiently managed to ensure smooth and swift processing.

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 behaviour and not overspending in a hasty situation.

How Many UPI Transactions Will Be Free?

One of the greatest benefits of UPI is that most of the transactions are free of charge thus it encourages more uses of digital payments. This section highlights the instances when UPI transactions are still free:

Free Transactions:

UPI users do not incur charges for transactions carried out from one bank account to another, bill payments, or P2P transfers.

All the transactions performed using UPI, for instance via Google Pay or Phonepe, Paytm Micro, and Other UPI apps, are Free except for specific transactions as person-to-person transactions.

Transaction Limits:

There are limits imposed by the governments as well as banks on the highest amount allowable for UPI transactions (usually, for most persons, a maximum of ₹1 lakh is allowed within a single day), but any transaction carried out below that remains free.

Service Charges:

UPI Inter-operable transactions between persons for settlements are considered free, transactional fees however may arise upon an engagement in commercial or bill payments or transfers of UPI abroad. Also, expect some UPI transactions that would involve credit cards to involve some transaction fees.

UPI Transaction Limit by Period (Day/Week/Month)

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.

UPI Transaction Limits Apps and Banks

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

Apps:

PhonePe’s UPI transaction limit per day

The UPI transaction limit per day PhonePe is Rs. 1,00,000. A user can undertake 20 transactions in 24 hours on the PhonePe app. If you’re wondering about the PhonePe transaction limit, it’s designed to cater to both small and large payments, making it highly convenient for everyday transactions. The PhonePe limit per day ensures users can make multiple transactions without hitting the cap quickly.

Google Pay’s UPI Transaction 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 Transaction 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 Transaction 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.

Banks:

SBI UPI transaction Limit Per Day

The SBI UPI transaction limit per day 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 Transaction Limit Per Day

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

HDFC Bank UPI Transaction Limit Per Day

The HDFC Bank UPI Limit Per Day is ₹ 1 lakh. This consists of transactions done both on a person-to-person basis and on a person-to-merchant basis.

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

Surcharge / Interchange Fee on UPI Payment

Unified Payments Interface (UPI) is one of the fastest-growing digital payment modes in India, given its ease of use and functionality. Nevertheless, there seems to be some misunderstanding about surcharges or interchange fees on UPI transactions. Let’s clarify:

• Interchange Fee: An interchange fee is a charge paid by one financial institution to another for processing a UPI transaction. It is paid by the payer’s bank to the payee’s bank. This fee compensates the bank for facilitating the UPI transaction.
• Surcharge: A surcharge is a fee in addition to the existing price, which a service provider or a retailer may impose to recover costs incurred, for example, in processing the transaction. UPI does not impose any surcharges on users, although certain service providers or merchants may apply them in specific circumstances.

UPI Transactions and Fees:

The Reserve Bank of India (RBI) has not imposed any direct surcharge on retail users of UPI transactions meaning that this payment mode is very inexpensive to the users. In addition to this, it is worth noting that the banks participating in the UPI system may impose certain fees for interbank transactions or other services, such as UPI credit-based card transactions.

Who Will Pay the Interchange Fees?

In most cases, interchange transaction costs are incurred by the bank that initiates the transaction. However, the ultimate burden of the interchange transaction costs can be internalized by the various parties to the transaction, each of them bearing a portion of the cost. Here the different segments are discussed:

Payer’s Bank (Issuing Bank):

Typically, the payer’s bank (issuing bank) bears the responsibility of paying interchange charges to the payee’s bank for transaction processing to the acquiring bank for the transaction processing.

Usually, this will be quite low, only a fraction of the total worth of the transaction in question, and in most standard UPI transactions, it is largely insignificant.

Merchant’s Bank:

In the case of UPI payments made by customers which would involve the merchants receiving payments, they too may incur interchange charges regarding the merchant’s bank.

In many instances, however, such costs may be transferred to the final consumers either as a separate charge or by increasing the prices of goods/services.

Users:

Usually, the users themselves do not have an obligation to incur any interchange charges, however, it should be pointed out that in certain instances such as with regard to UPI credit card transactions or the use of premium products, banks tend to impose other costs.

Worried about your UPI transaction status? Here is a guide to help with verification of UPI transactions

How to Manage Your UPI Limits?

Managing your UPI transaction limits is crucial for effective and seamless payment processing. Here are some of the handy methods for managing UPI limits:

Check your current limit:

Check for your UPI transaction limits frequently to avoid any inconveniences. You can find these details on your bank’s mobile application and even on UPI apps like Google Pay and PhonePe. This information is usually located in the settings or UPI tabs of such apps.

Request Increase:

In case you have to exceed the limit set by the bank which is normally excised at ₹1 lakh for a single day, you may have to ask your bank to increase that already established limit. Most of the banks allow raising limits for the customer depending upon the limit type, the transaction history, and after certain other imposing verification. You must seek further clarification from your bank as to its policies.

Break Up Big Payments:

On the other hand, if the payment you wish to make exceeds the active ‘daily UPI transaction limit’, you can also choose to break this up into smaller paying transactions. Before continuing please ensure that the total sum you wish to pay the service provider in the day does not exceed the maximum limit allowed, thereby reducing chances of interruptions in payments.

Monitor UPI Transaction:

Watch your UPI transactions consistently now and then through your bank mobile application or UPI service. This will enable you to keep track of your transaction limit and therefore schedule your payments in line with your transaction cap to avoid unexpected chances of reaching the limit.

Use UPI-Linked Credit Cards:

If you want to make high-value transactions, you may add a credit card to your UPI account. This is usually done to make high-value purchases; however, be careful because there are handling charges and interest rates that will apply if the payment is not cleared on time.

Managing UPI limits appropriately helps in ensuring a great digital payment experience.

Make Payment Collect Easy with EnKash’s UPI Payments  

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.