The National Payments Corporation of India (NPCI) established the Unified Payments Interface (UPI) as the contemporary cash payment option. It supports numerous bank accounts and lets the user pay different merchants from a single mobile application. The app was first introduced on April 11th, 2016, by former honourable governor of the RBI. Although UPI transactions are a fantastic payment option, their convenience raises security problems. As a result, RBI has imposed a UPI transaction limit to guarantee the same.
To enable receipt and payments across various bank accounts, UPI uses pre-existing systems like Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS). The UPI makes it possible to send money without utilising credit or debit cards, net banking, or account information after a recipient has been identified. Having said that, it is necessary to comprehend the UPI payment limit, which is something that this post will cover.
New UPI Transaction Limit Update in 2022
According to an NPCI circular issued on December 9, 2021, the UPI transaction maximum for Initial Public Offerings(IPO) and Retail Direct Schemes(RDS) is 5,00,000.
It is crucial to remember that on September 24, 2021, the NPCI published a circular calling for the standardisation of the UPI transaction limit.
Banks were urged by NPCI to adhere to the following standards:
UPI Transaction Category
UPI Transaction Type
UPI Transaction Limit
Peer to Peer/Peer to Peer Merchant
Collect Share Intent Links and Payments QR Share and Pay
Peer to Merchant Non-Verified Offline
Collect Share Intent Links and Payments QR Share and Pay
P2M (Verified Specific Categories)**
Here: *P2PM stands for the category that serves independent retailers and small businesses.
**Specific Category denotes businesses that Acquiring Banks have added to their list of “certified businesses.” Additionally, it contains certain business subcategories including insurance, capital market, collection, and preapproved disbursement.
Although the RBI is pushing for uniformity in the UPI transaction limit, few institutions have yet to implement it. This is the cause of the potential for different UPI restrictions between banks.
UPI transaction limits fall into the following categories:
- The maximum amount of money that can be transmitted using UPI, or UPI transaction amount limits.
- The number of UPI transactions a person can complete in a day, or frequency.
UPI Transaction Limit per day
Each bank in the UPI network has established a daily limit for UPI transactions, which varies from bank to bank. So, the per day UPI transaction limit ranges from 10,000 to 1,00,000.
For instance, the daily UPI transaction limit in SBI is 1,00,000 while the daily UPI transaction limit in Bank of Baroda is Rs. 50,000.
UPI Transaction Limit per week
The weekly UPI transaction restriction has also been established by several banks. So, the per week UPI transaction limit ranges from 4,00,000 to 7,00,000.
For instance, SBI has no limit, whereas IDFC bank has a UPI transaction limit every week of 7,00,000.
UPI Transaction Limit per month
A monthly UPI transaction limit has been established by reputable commercial banks and limited public sector banks. So, per month UPI transaction limit ranges from 10,00,000 to 30,00,000.
For instance, the monthly IDFC UPI transaction limit is 30,00,000.
How to increase UPI Transaction Limit?
You are restricted to transferring no more than the daily transaction limit that has been set for your UPI account. As a result, you will not be able to transmit an unlimited amount of money. You are only able to transfer the maximum amount of money that is allowed. When you have used up all of your allowed attempts for the day, you will be required to wait until the clock strikes midnight. After that, you will once again be able to use the UPI-based functionality of your payments app to complete financial transactions.
However, a customer will not be able to raise the UPI limit or make any other adjustments to it under any circumstances. The maximum amounts that can be charged to your UPI have been standardised by the government. As a result, individual users do not have any influence over the UPI restriction that is applied each day. The National Payments Clearing Institute (NPCI) has ordered that all users of UPI apps will be required to comply with the requirements for the UPI daily limit.
NPCI has made the AutoPay feature for recurring payments available.
One can use UPI AutoPay, a special feature, to pay recurring bills like subscriptions or electricity bills that are less than Rs 5,000. This function makes a monthly automatic deduction of the specified amount without requiring a UPI PIN.
Benefits of UPI Autopay
UPI Autopay has several advantages for both customers and businesses these are:
Benefits to customers:
- No more late fees and penalties with timely payments.
- Recurring mandates offer customised payment options (such as monthly, quarterly, etc.) and amounts (ranging from Rs. 1 to Rs. 5,000+) for each customer.
- Additionally, there are capabilities to modify, revoke, and pause orders as needed.
- A convenient and safe solution to handle recurring payments.
- A cashless method of payment.
- Avoiding long queues.
- There is no paperwork or documentation.
Benefits for businesses:
- Quick & simple registration will result in a shorter turnaround time.
- Ensure that customers pay you on time.
- Better customer service.
- Increasing the consumer base through customer retention and satisfaction.
- Increasing customer trust.
- All possible flows are available for registration.
Digital payments are now very simple and convenient thanks to UPI. You don’t need to keep track of anyone’s or your bank account number. You only need to enter the recipient’s mobile number or the virtual payment address. This risk-free approach has become one of the most widely used ways to transmit and receive money online.
However, customer knowledge of the UPI transaction limit is lacking. They can experience transaction failure as a result when carrying out the transaction. This can result in missed payments and diminished creditworthiness. For instance, being unable to make prompt credit card payments because a UPI transaction failed. Due to this lapse, you’ll wind up paying significant fines as well as other fees.
Although it is free, you can send money more quickly than with the NEFT and RTGS options that are now available. Because UPI-enabled bank transactions are unique in the entire world, it’s important to understand the UPI limit. It has not yet been included in the banking systems of other nations. Additionally, we are proud because this system was created in India.
1. How much money can we send through UPI in total?
Ans: According to NPCI norms, the maximum amount that can be sent over UPI in a single day is Rs 1,00,000.
2. How to increase the UPI limit?
Ans: A customer can not be able to raise the UPI limit or make any other adjustments to it under any circumstances. So, the maximum amounts that can be charged to your UPI have been standardised by the government.
3. How does UPI autoPay work?
Ans: NPCI has made the AutoPay feature for recurring payments available. Customers can now enable periodic eMandate using any UPI application for recurring payments such as mobile bills, energy bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds, and more thanks to the new feature that has been implemented.
4. Can I reduce the current UPI Transaction Limit?
Ans: Certain banks offer the option to reduce the UPI transaction limit in terms of both quantity and number. Visit their online net banking website to accomplish this.
5. How much money I can transfer internationally using UPI?
Ans: International transactions cannot currently use the UPI money transfer capability.