UPI Transaction Limit Explained

Introduction

The Unified Payments Interface (UPI) has transformed how over 300 million of Indians pay each month and has become the most successful instant payment system globally (Quick Introduction to UPI). To ensure all these hundred millions of users can use UPI securely, there are safeguards in place to protect these individuals and UPI as a system. There are three main UPI transaction limits, which we will talk about in this article. Whether you are paying bills or transferring large amounts of money, knowing your UPI limit and how to maximise it can help you avoid any surprising payment problems at a crucial moment.

UPI Transaction Limits

A UPI limit refers to the maximum amount of money that can be transferred through the UPI system in a single transaction, or within a daily/monthly timeframe. These limits are primarily in place for security purposes of the UPI system and to prevent fraudulent activities, protecting you as a end user.

Daily UPI Transaction Limits

The general UPI transaction limit per day is set at ₹1 lakh (₹1,00,000) by the National Payments Corporation of India (NPCI). However, this limit can vary based on your bank and the UPI app you are using:

In addition to the monetary limit, UPI also imposes a transaction count limit, which is generally capped at 20 transactions per day for regular UPI payments. This means even if you have not reached your daily monetary limit, you might still be restricted after completing 20 transactions in a day. Special cases are with the banks *ICICI and *Kotak Mahindra, where their maximum transaction limit is at 10 transactions per day.

Also, for new UPI users, a lower limit of ₹5,000 applies as a security measure on top for the first 24 hours.

Monthly UPI Transaction Limits

While the NPCI has not set a universal UPI transaction limit per month, IDFC FIRST Bank is to our knowledge the only bank that has a monthly limit. The monthly limit of IDFC FIRST Bank is ₹30,00,000 (₹30 lakh).

If you regularly conduct high-value transactions, we would recommend to check with your bank about any potential monthly caps that might affect your payment schedule; just to be on the safe side.

Higher UPI Payment Limit Per Transaction

Despite the previously stated standard UPI payment limit per transaction of ₹1 lakh, the NPCI has introduced higher transaction limits for specific payment categories:

• ₹2 lakh (₹2,00,000) per transaction for:
  • 📈 Capital markets
  • 💸 Foreign remittances
  • 🛡️ Insurance payments
  • 💰 Collections
• ₹5 lakh (₹5,00,000) per transaction for:
  • 💳 Tax payments
  • 🏫 Payments to educational institutions and hospitals
  • 📊 IPO applications
  • 🏦 Payments to RBI's Retail Direct Schemes

It's important to note that these higher limits were implemented starting from end of 2024, and require merchants to be properly verified to be able to process these larger payments. Properly verified means that merchants must complete a formal verification process, such as document validation, full KYC, risk assessments, and correct categorisation, to prove their legitimacy and comply with NPCI rules before being able to accept higher UPI payment limits of ₹2 lakh or ₹5 lakh.

How to Increase Your UPI Limit

There are several ways to increase your UPI limit:

1. Wait at least 24 hours. The most low-hanging fruit is to wait 24 hours as a new user, since the limit of ₹5,000 is only for the first 24 hours.
2. Select the right bank. As seen on the table above, each bank sets its own transaction limit. Check which bank offers you the most favourable limits and fits your needs.
3. Become a premium account holder. Some banks offer premium or upgraded accounts that may come with higher transaction limits, although these might require maintaining a higher minimum balance or paying additional fees. Ask your bank about these options. We know this point is not fair to the ones that can not qualify for a premium account.
4. Have multiple UPI IDs. If increasing the limit on a single UPI ID is not possible, there is the option to create additional UPI IDs linked to the same or different bank accounts and distribute your transactions across them.

How to Check Your UPI Transaction Limit

Checking your UPI transaction limit should be simple. You can check it through your UPI app or by contacting your bank directly:

1. Via your UPI app:
   • Open your UPI application and navigate to the profile or settings menu.
   • Locate the "Bank Account" or "Transaction Limits" section.
   • Your current UPI limit should be clearly displayed there.
2. Through your bank's mobile banking app:
   • Log into your bank’s mobile banking application.
   • Find the UPI section under settings or services.
   • View your daily transaction limit for UPI payments.
3. By contacting your bank directly:
   • Reach out to customer support via phone or email.
   • Visit your nearest bank branch for assistance.
   • Check the official website of your bank for UPI limit details.

Conclusion

Understanding your UPI transaction limit is essential for not running into any issues. While the general UPI limit per day is ₹1 lakh with a maximum of 20 transactions, these limits can vary based on your bank, account type, and transaction category.

For higher-value transactions, particularly those related to education, healthcare, taxes, or investments, the increased limits of up to ₹5 lakh give greater flexibility. If you frequently make large payments, consider checking with your bank about how to increase your UPI limit to better suit your needs.

Remember that UPI limits are primarily implemented as security measures for you and the UPI system as a whole, so while they might occasionally seem restrictive, they play a crucial role in protecting your money in this digital ecosystem.