UPI Transaction Limits and Guidelines in India: What You Need to Know

UPI Transaction Limit: In India, the use of Unified Payment Interface (UPI) for online transactions has surged dramatically over the past few years. From small shops to large bill payments, UPI has become a ubiquitous mode of payment. However, many users may not be aware of the transaction limits imposed on UPI payments. This article provides detailed information about the UPI transaction limits and other related guidelines.

The National Payments Corporation of India (NPCI) has set a daily transaction limit for UPI payments. According to NPCI, any UPI user can transfer up to Rs 1 lakh to a person in a single day. This limit is applicable for most everyday transactions.

For transactions related to the capital market, insurance, and business purposes, the UPI transaction limit is higher, set at Rs 2 lakh per day. This adjustment helps facilitate larger financial activities through UPI.

IPO and Special Schemes

The transaction limit for booking Initial Public Offerings (IPO) or making payments under the RBI Retail Direct Scheme is even higher, capped at Rs 5 lakh. Additionally, in December last year, the Reserve Bank of India (RBI) increased the transaction limit for UPI payments to hospitals and educational institutions to Rs 5 lakh. According to a circular issued by NPCI, this enhanced limit is applicable only to verified merchants, ensuring secure and substantial payments in critical sectors.

It is important to note that while the person-to-person UPI transaction limit is set at Rs 1 lakh by NPCI, individual banks may impose their own limits. For instance, ICICI Bank's website states, “The upper limit set by NPCI is Rs 1 lakh per transaction. In such a situation, only 10 transactions can be done in 24 hours through a third-party application. For transactions exceeding this number, you will have to wait for 24 hours from the first transaction.”

Understanding the Limits

These UPI transaction limits are designed to balance convenience and security, ensuring that users can make substantial payments while minimizing the risk of fraud. As the trend of online transactions continues to grow, understanding these limits can help users make informed decisions and manage their finances effectively.

By adhering to these guidelines and leveraging the UPI system, users can enjoy seamless and secure transactions across a variety of platforms and services in India.

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