January 3, 2025 · 12 mins read
Santosh Kumar
Advancing digitization and increased ease of technological reachout has propelled Unified Payments Interface (UPI) to revolutionize the way we handle transactions. Be it for paying a hawker on the streets or for transferring large amounts of funds to a client, UPI has become the go-to tool for all kinds of financial transactions. Though UPI is a breakthrough, there are still various loopholes that must be resolved. The transaction cap imposed by banks and UPI service providers is one such significant limitation. Nevertheless, if able to unravel the ways on how to increase UPI transaction limit, one can easily improve personal and professional financial flexibility.
In this article, we’ll elaborate deeply on the concept of UPI limits, their purpose and target aim. Following also is a composite guide containing the step-by-step methods to increase UPI limit effectively. But before we dive in, let us first get to know the significance of UPI transaction limits.
Overview: What actually are UPI Transaction Limits
As the name suggests, UPI transaction limits refer to the restrictions placed on the amount and frequency of transactions a person is allowed to carry out in a single day using any UPI-enabled app. These limits have been introduced for various essential reasons such as for locking in the security of transactions carried, limiting any fraudulent exercises and also in adherence to various government policies.
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This refers to the maximum amount the customer can transfer in one go. For instance, most banks set a per-transaction count of ₹1 lakh for UPI payments.
The tentative and cumulative amount for the total value of all transactions you can perform within 24 hours. This is usually set between ₹1 lakh and ₹2 lakhs, depending on the bank and app.
Some banks and UPI platforms also have particular restrictions in regards to the number of transactions one can carry out in a day. This number is conventionally set between 10-20 transactions.
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Primarily the most essential and foremost reason behind limiting transaction amount and frequency is basically security. By introducing these limitations, banks purely aim to:
1: Check any unauthorized usage or misuse of deposits of their customers.
2: Minimize the occurrence of frauds and phishing scams as much as possible.
3: Provide seamless usage across all online and offline platforms during any emergency situations or during peak usage.
These capping limits have far-reaching benefits and help people manifold for daily financial transactions. However, for businessmen and for owners of large firms, who want to make use of online transactions, these limits can pose a challenging hindrance for uninterrupted functioning of the institution. Therefore, to educate oneself on how to work around these limits can prove beneficial.
There are various reasons as to why a user may opt to further aggrandise their UPI transaction limit. Before discussing the various ways on how to increase the UPI limit, let us first take a glance at the following scenarios that call for an increase in the limit.
Statistically, expensive purchases, university tuition fees or construction purposes are the main reasons as to why users require higher transaction limits.
From bulk purchases to vendor payouts, higher UPI limits prove to be an invaluable asset for business owners and small scale entrepreneurs.
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Unexpected circumstances that require heavy to and fro transfer of funds readily and efficiently can be easily carried out if applied for higher transaction limits.
Splitting payments across multiple transactions can be cumbersome and time-taking. A higher limit permits users to proficiently and competently transfer funds.
When thinking of how to increase the UPI limit, it is foremostly essential to first understand one’ own personal and industrial needs. Having accurate goals designed beforehand helps immensely to find the most effective method of increasing limits.
The first and most crucial step is to determine the current transaction limit cap set by your bank. This information further influences when taking a decision to improve transaction limits. This information can easily be found in the UPI app. You can also get to know the details by contacting your bank.
Steps to Check Your Current Limit:
1. Open your UPI app (e.g., Google Pay, PhonePe, Paytm, or BHIM).
2. Navigate to the "Help" or "Settings" section.
3. Track the transaction limits under the "Bank Accounts" or "UPI ID" dialog menu.
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Considering the services of the bank you currently make usehave lower transaction limits compared to their other market competitors; it is a wise choice to timely switch your bank. Different banks offer varying transaction limits; conventionally they range somewhere between daily funds of Rs. 25,000 to Rs. 1 lakh. Therefore carefully compare the transaction caps of various service providers and then make your choice.
UPI transaction limits are determined essentially by the bank in which you have an account. If you maintain an active bank account in adherence to all banking guidelines, there are higher chances of getting an easy approval for increasing transaction limits. Good banking relationship proves honest credibility. Banks prioritize reliable customers with active accounts, which increases the chances of having your transaction limits raised. One can easily maintain an honourable standing by:
1: Avoiding overdrafts or penalties.
2: Maintaining an active bank account transaction credentials to reflect financial stability.
3: Making periodic and regular use of your account for transactions
Banks may set a daily limit, or may limit the amount for each individual transaction. Make sure you are aware of your bank’s specific policies. To exact further information, contacting the particular bank is recommended.
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Fulfilling Know Your Customer (KYC) compliance details is a very important influencing factor to find out transaction limits. Accounts without full KYC verification or incomplete KYC validation, often have to face tight limits. Once your KYC is updated, the bank may automatically increase your transaction limits or allow you to request an adjustment.
How to Complete Your KYC easily:
1. Visit your bank branch or apply online through an UPI app.
2. Provide valid and attested identity documents such as Aadhaar, PAN, or passport.
3. Mobile number must be linked to your bank account.
If your current limits do not meet your needs, you can directly request an increase through your bank’s official channels.
Steps to Request a Limit Increase:
1. Log in to your bank’s mobile banking app or visit their website.
2. Navigate to the UPI section and locate the "Transaction Limit" option.
3. Submit a formal request stating the reason for requiring a higher limit.
The bank will evaluate your account activity and may approve the request based on your financial history and compliance with their policies.
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Keeping your UPI app updated ensures access to the latest features and security protocols, which may include enhancements to transaction limits.
How to Update Your App:
1: Visit the Google Play Store or Apple App Store.
2: Search for your UPI app and check for available updates.
3: Install the latest version to stay current with features and policies.
4: Additionally, some apps allow users to adjust transaction limits directly within the app settings.
If increasing the limit on a single UPI ID isn’t possible, you can spread your transactions across multiple UPI IDs linked to the same or different bank accounts. This approach is particularly useful for businesses handling high transaction volumes.
How to Create Additional UPI IDs:
1. Open your UPI app and navigate to the "Add/Manage UPI ID" section.
2. Generate a new ID and link it to an existing bank account.
3. Use these IDs alternately to distribute your transactions.
Some banks offer premium accounts with higher transaction limits and enhanced features. While this may require maintaining a higher minimum balance or paying a fee, the benefits often outweigh the costs.
How to Upgrade Your Account:
1. Contact your bank’s customer service or visit a branch.
2. Inquire about premium account options and their associated benefits.
3. Fulfill the requirements to upgrade your account.
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While not a direct way to increase your UPI limit, optimizing your usage ensures you stay within the cap without interruptions.
Best Practices:
1: Prioritize high-value transactions.
2: Avoid splitting payments unnecessarily.
3: Plan your transactions to minimize the number of transfers required.
The BHIM UPI app, developed by the National Payments Corporation of India, also allows users to perform UPI transactions. BHIM UPI has a default transaction limit of Rs. 1 lakh per day. However, users can request an increase in the transaction limit by following the steps provided in the app. You may need to upgrade your account or ensure that your KYC details are updated. BHIM UPI users often face similar transaction limits as other UPI platforms. Here’s how you can increase your BHIM UPI transaction limit:
1. Complete KYC: Ensure your account is KYC-compliant to access higher limits.
2. Contact Your Bank: Reach out to your bank for assistance in raising the limit.
3. Stay Updated: Regularly update the BHIM app for new features and policies.
4. Link Multiple Accounts: Distributed transactions across multiple bank accounts if needed.
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One of the primary advantages of increasing the UPI limit is the increased convenience it offers to users. The current transaction limits are often restrictive for individuals who wish to make large payments, such as for bills, rent, or online shopping. By increasing the UPI limit, users will be able to complete more substantial transactions without the need for multiple payments. This will streamline the payment process, saving time and effort.
For businesses, particularly small and medium enterprises (SMEs), higher UPI limits can help facilitate larger transactions. Many businesses have to rely on alternative payment methods, such as cash or bank transfers, when their transaction volumes exceed the UPI limits. With a higher limit, businesses will be able to complete larger payments and collections instantly, enhancing their cash flow and simplifying their operations.
By raising the UPI transaction limit, the system can cater to a wider range of financial activities. For instance, larger transactions related to loans, savings, and investments can be processed smoothly. This would not only encourage more people to adopt UPI but also promote financial inclusion by enabling underserved individuals to engage in higher-value transactions.
As the digital economy continues to grow, having an increased UPI limit aligns with the needs of both individuals and businesses. A higher transaction limit can attract more users to the platform, driving further adoption. Additionally, with the ability to handle larger transactions, UPI can become even more competitive with other payment systems and could potentially become a dominant method of payment in India.
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Here are key precautions to ensure secure UPI transactions:
Enable Two-Factor Authentication: Always use a UPI PIN to authorize transactions. This ensures that even if someone gets access to your device, they cannot make transactions without the PIN.
Verify Payment Details: Double-check the recipient's name, UPI ID, and transaction amount before confirming payments. Fraudsters often rely on mistakes made during this step.
Use Trusted Apps: Download UPI apps only from trusted sources like Google Play Store or Apple App Store. Be cautious of third-party apps that might steal sensitive information.
Regularly Monitor Bank Statements: Keep an eye on your bank account and UPI transaction history for any unauthorized activity. Report suspicious transactions immediately.
Avoid Public Wi-Fi: Refrain from making transactions over public Wi-Fi networks as they are vulnerable to cyber-attacks. Use a secure, private connection.
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Increasing your UPI limit allows you to fully leverage this cutting-edge payment system. Increasing your UPI limit is crucial for anyone who frequently conducts high-value transactions. By ensuring that your KYC is updated, opting for premium services, or choosing a bank with higher transaction limits, you can easily raise your UPI limit. Whether you are using BHIM UPI or another UPI-enabled app, understanding how to increase the UPI transaction limit can enhance your payment experience and provide greater flexibility for large transactions. By completing your KYC, maintaining a healthy account, and exploring alternative methods like premium accounts or multiple UPI IDs, you can overcome transactional barriers with ease.
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