A few years ago carrying cash was a must when you had to leave your home, but now we live in an era where you can transfer money in seconds. No matter where you shop or buy, everyone now accepts online payments. UPI or Unified Payment Interface is the reason for this revolution in the financial industry.
What Is UPI
It is a digital payment system developed by NPCI or National Payments Corporation of India (under the Reserve Bank of India) which helps transfer payments between two countries instantly via a mobile platform.
The best thing about this digital payment is that anyone can easily access it, be it a street vendor or a leading brand store in a mall, anyone can use UPI. In this article, we discuss UPI transaction limits for everyone (including merchants).
For each UPI transfer, the NPCI managing body has set a certain transaction or transfer limit for daily transactions. Currently, the UPI transfer limit for each UPI transaction is set at Rs.1 lakh.
- Unified Payment Interface is based on IMPS or Instant Payment Service and hence the limit is set at Rs. 1 lakh
With the UPI method, you can make a maximum of 20 transactions per day.
- Although the maximum transaction limit in case of UPI is Rs.1 lakh, it can also depend on the bank issuing this transaction. For example, the limit of each transaction can vary from Rs. 1000 to Rs.1 lakh (depending on bank).
- The maximum transaction amount per person with UPI ID is Rs. 1 lakh
- The BHIM UPI transaction limit is Rs 40,000 per transaction and this is also the maximum UPI limit per day. This transaction limit applies to anyone who has a bank account connected to BHIM. This transaction limit may also be revised from time to time.
- In the case of merchant payments, the maximum transaction limit is increased to Rs. 2 shellacs per day.
- If you change your smartphone, UPI PIN, mobile number, etc., your maximum limit will be set to Rs. 5000. This transaction limit is only valid for 24 hours.
What Is UPI Maximum Limit?
The maximum UPI limit per day is set at Rs. 1 lakh for everyone who has a bank account.
Based on the new rules and updates from NPCI, the current UPI transaction limit for Direct Retail Schemes or RDS and Initial Public Offerings or IPOs will be set at Rs. 5 lakhs. The NPCI circular detailing these new rules was issued in December 2021. However, it should also be noted that the NPCI issued another circular in September 2021 which mentions standardized UPI transaction limits.
Currently, the NPCI has instructed the banks to follow these particulars:
|UPI Transaction Type||UPI Transaction Category||UPI limit per day|
|Peer to Peer or P2P and Peer to Peer Merchant or P2PM||Intent link and QR code||Rs. 2000|
|Peer to Merchant or P2M Offline and Non-verified||Intent link and QR code||Rs. 2000|
|P2P/P2PM||Direct Payment||Rs. 1 lakh|
|P2M||All types||Rs. 1 lakh|
|P2M specific categories||All types||Rs. 2 lakh|
Certain groups cover different business categories such as insurance, FIR, capital markets and pre-approved payments. Although the Reserve Bank of India is trying to standardize the UPI limit per day, most banks have not implemented it yet. For the same reason, you may find different UPI limits per day at different banks.
UPI transaction limits For All Banks
The UPI limit per day is different for each bank and if you have a bank account, you should be aware of these transaction limits. Here are some details of UPI transaction limits for several well-known banks:
- State Bank of India or SBI: Transaction cap up to Rs. 1 lakh per day. You can conduct a total of 10 transactions per day.
- Kotak Mahindra Bank: Maximum transaction amount per transaction is Rs. 25000 and 2 transactions per day are allowed.
- IDFC First Bank: The transaction limit is Rs. 25000 per transaction and the per day limit is Rs. 1 lakh.
- HDFC Bank: Both transaction cap on every transaction and UPI limit per day is at Rs. 1 lakh.
- ICICI Bank: The account holder of ICICI bank can make 20 transactions in 24 hours and the transaction cap is Rs. 1 lakh.
If you actively use UPI for payments and transfers, you should know the UPI limit per day and the maximum number of transactions you can make each day. While the Unified Payment Interface has enabled us to conduct and operate transactions very smoothly, there are also certain rules and regulations that you must follow.