Understanding UPI Transaction Limits: Know The Maximum Amount You Can Transfer | Fi Money (2024)

An Overview

UPI's full form is Unified Payments Interface, which is a system that allows instant and seamless money transfers between different bank accounts using mobile devices. UPI is developed by the National Payments Corporation of India (NPCI), which is regulated by the Reserve Bank of India (RBI). UPI is one of the most popular and convenient modes of online payments in India. But did you know there is a UPI transaction limit per day?

How Much Amount Can Be Transferred Through UPI?

There is a UPI transaction limit per day on the amount and frequency of transactions that can be done through it. The UPI transaction limit per day is set at ₹1 lakh by NPCI, but it may vary from bank to bank. Some banks may also have weekly or monthly limits on UPI transactions. The UPI daily limit is the maximum amount of money that can be transferred through UPI in a day. The UPI daily transaction limit is the maximum amount of money that can be transferred in a single UPI transaction. The UPI payment limit is also affected by the type of transaction, such as bill payments, merchant payments, or wallet payments. Some transactions may also incur an interchange fee, which is a charge paid by the merchant to the payment service provider for processing the transaction.

Can Banks & UPI Apps Set UPI Transaction Limit?

Sure, banks can set their own UPI transaction limits. So can the different UPI payment apps like Google Pay, PhonePe and PayTM. However, these UPI transaction limits must be within the overall upper limit set by the NPCI.

To figure out how much you can transfer through UPI apps, you need to account for the UPI transaction limits set by the app you are using as well as by the bank whose account you’ve linked to the app.

Generic Understanding of UPI Transaction Limits

• Regular UPI transactions have a maximum daily limit of ₹ 1 Lakh.
• UPI withdrawals from ATMs using UPI apps are limited to ₹ 10,000 per day.
• Bank UPI apps allow a total of 20 UPI transactions each day.
• Third-party UPI apps permit a maximum of 10 transactions per day.
• The per transaction limit for any UPI transaction is ₹ 1 Lakh.
• UPI transactions related to capital markets, collections, insurance, and foreign inward remittances have a limit of ₹ 2 Lakh per transaction.
• For IPOs and retail direct schemes, the UPI limit per transaction is ₹ 5 Lakh.

Daily UPI Transaction Limits: A Comparison Across Popular Service Providers

Latest Updates on UPI Transfer Charges

• Users were confused about whether UPI payments would be charged or remain free after a statement by the National Payments Corporation of India (NPCI). NPCI clarified that bank-to-bank account transfers via UPI will continue to be free but merchants will be charged a 1.1% interchange fee for UPI transactions of more than ₹2,000 using prepaid payment instruments (PPIs) like wallets for cards starting from April 1, 2023. The recipient payment service provider/bank charges the merchant an interchange fee. For more information, check out this article.
• In a groundbreaking move, the Reserve Bank of India (RBI) made waves on September 4, 2023, by expanding the horizons of the UPI system. This development permits the utilization of pre-sanctioned credit lines from Scheduled Commercial Banks as funding accounts for UPI transactions. What this means for users is a significant enhancement in convenience and flexibility.

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Frequently Asked Questions

1. How much money can I transfer in a single UPI transaction?

As per NPCI guidelines, the maximum amount for one UPI transaction is ₹1 Lakh for P2P transfers and most merchant payments. However, for some P2M transactions like credit card payments, loan repayments, and transactions related to capital markets, the limit is ₹2 Lakhs.

2. Is there a limit on the number of UPI transactions I can make in a day?

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

3. Can I change my UPI transaction limits?

The government establishes the daily transaction limit for UPI, considering security measures. Consequently, these restrictions are beyond the control of individual users. Therefore, one cannot alter or request to alter their UPI transaction limits.

4. How can I increase my UPI transaction limits?

The government establishes the daily transaction limit for UPI, considering security measures. Consequently, these restrictions are beyond the control of individual users. Therefore, one cannot alter or request to alter their UPI transaction limits.

5. Are there any security measures in place to protect UPI transactions?

• Verify the recipient's UPI ID before making payments to ensure your money reaches the intended recipient.
• Your UPI PIN is crucial for security; never share it with anyone; only enter it on the designated UPI PIN page.
• Beware entering your UPI PIN or scanning QR codes to receive money, as it's unnecessary.
• Always check SMS alerts from your bank after each transaction to verify the amount and report discrepancies.
• Use the UPI app's help section with 24x7 assistance from NPCI experts for transaction-related issues.

6. Does UPI charge money?

As of October 2023, UPI transactions do not carry any additional charges or fees. So, you can send and receive money via the UPI interface free of cost, without incurring any extra costs or hidden fees whatsoever.

7. What is the UPI transaction limit per day?

The UPI daily transaction limit is up to ₹1 Lakh, according to NPCI.