What is the limit of UPI transactions?

Unified Payments Interface (UPI) is an interface that powers multiple bank accounts into one mobile application of any participating bank, merging several banking features, seamless fund routing, and merchant payments into one hood. It also caters to the "peer-to-peer" collect request, which can be scheduled and paid as per requirement and convenience. Each bank provides its own UPI App for Android, Windows, and iOS mobile platform(s).

With such an emerging technology, the question arises: What is the limit of UPI transactions? Let us examine in detail all you need to know about the UPI transaction limit.

What is UPI and what are the benefits of using UPI?

The Unified Payments Interface (UPI) has transformed digital payments in India by being easy, secure, and real-time. UPI lets users transfer any amount from one bank account to another using a unique UPI ID. Here, the concept of sharing account numbers and IFSC codes is obviated. The convenience and safety levels of financial transactions have significantly increased through UPI, hence its high demand as a method of payment among both individuals and business houses.

Key Benefits of Using UPI

For Merchants

Faster settlements: The fastest settlements are the most significant advantage for merchants using UPI. Settlements through UPI are quicker, enabling smooth cash flow and granting merchants access to funds immediately.

Strong security: UPI's 2-factor authorization adds extra protection during fund transfers and assures that every transaction is safe and protected from unauthorized access or fraud.

Improved customer experience: UPI has improved customer experience by simplifying and making easy financial activities that ensure increased customer satisfaction

Easy digital transactions: UPI makes it easy for merchants to reach a more accessible customer base, as traditional payment methods are eradicated and customers embrace the digital world.

Easy integration: UPI provides an avenue for easy integration between online stores and applications, making it easy for merchants.

Low transaction cost: Compared to traditional payment methods, UPI has minimum to no fees or charges. This has reduced the transaction cost, making UPI the most efficient payment method for merchants.

For Customers

Very easy to use: The easiest advantage for any customer when he uses UPI is that the process is convenient and very simple. Registration and payment with UPI are very convenient, with very basic account information and user details.

Security: Digital payment systems have always witnessed fraud or malpractice, but UPI has enhanced security with 2-factor authorization and biometric verification, which adds an extra layer of security for transactions.

Accessibility: UPI has enabled financial accessibility. Customers can make payments from anywhere at any time with an internet connection.

Flexibility in payment: UPI makes it convenient to make payments on online shopping apps or even in-store purchases.

Record keeping: UPI allows customers to track the transaction history of payments made through the UPI app.

How is UPI better than other Payment Methods?

Ease of User Experience

The UPI app is user-friendly and offers a seamless experience that any age demographic can understand and undertake with minimal effort.

QR Code Payments

UPI allows QR code-based payments that enable customers to make contactless payments directly at a retail outlet, diner, or even the internet by scanning the QR code.

Interoperability

Unlike mobile wallets, which restrict transactions to limited platforms, UPI allows two different banks or apps to communicate with each other, thus becoming more flexible and convenient.

Pre-Loaded Wallets Not Needed

Mobile wallets require users to load money first, but through UPI transactions, the linkage is directly between the bank account, thus excluding wallet balances to ensure smooth transactions. UPI is accepted by a wide array of merchants, e-commerce platforms, government services, and peer-to-peer transactions, making it the most versatile payments solution in India.

What is the limit of UPI transactions on a daily basis?

According to NPCI norms, the standard daily limit for UPI transactions for most users is ₹1 lakh. This limit covers person-to-person (P2P), bill payments, and regular merchant transactions. The number of UPI transactions is also capped at 20 per day. If a user makes more than that, he will have to wait for the 24-hour cycle to reset and then make more transactions.

Zet App Download from PlayStore

Increased UPI Transfer Limits for Certain Transactions

The UPI transaction limit has been increased to ₹5 lakh per day for certain transactions. These include:

Tax payments: Users can directly pay their taxes through UPI, which reduces the hassle of compliance.

Payments towards colleges/universities/schools: Colleges, universities, and schools can accept UPI payments up to ₹5 lakh for tuition and other fees.

Hospital and healthcare bill payments: Patients can pay hospital bills and medical expenses up to ₹5 lakh without limitation of transaction.

Investments in IPOs: Investors applying for initial public offerings (IPOs) can use UPI for payments up to ₹5 lakh.

Retail direct schemes of RBI: The Reserve Bank of India allows UPI transactions of up to ₹5 lakh for government bond investments.

UPI Limit Based on Industry and Merchant Type

As of April 2024, the limit for UPI transactions in the capital markets, foreign remittances, and insurance sectors has been set at ₹2 lakh per day. This enables a user to pay more amount while keeping his account safe.

For verified merchants in education and healthcare, the UPI limit is extended up to ₹5 lakh per day. This would ensure that high-value payments by large institutions could be processed without forcing customers to use alternative banking methods.

UPI transaction limits for specific banks

While the National Payments Corporation of India (NPCI) provides broad directives, each bank has a scope to set its own UPI transaction limits by considering the risk factor and safety assurance. Follow is an overview of the UPI transaction limits of different banks:

Bank Name: State Bank of India (SBI)

**Per Transaction Limit (₹): **1,00,000

**Daily Transaction Limit (₹): **1,00,000

Number of Transactions per Day: Not specified

Bank Name: HDFC Bank

Per Transaction Limit (₹): 1,00,000