Unified Payments Interface (UPI) has changed the face of money transactions in India. In the initial days of the Covid-19 pandemic, when people were panicking and making emergency withdrawals, UPI was a saviour. It helped people overcome their worries about money and make and receive payments effortlessly.

What is UPI?

UPI is a digital instant payment system developed by the National Payments Corporation of India (NPCI), which is regulated by the RBI. It allows you to transfer money between two accounts. It uses the Immediate Payment Service (IMPS) infrastructure that allows interbank electronic fund transfer 24*7 right from your mobile device.

Important Features Of UPI

UPI offers many beneficial features

1. A user needs to provide their bank details only once while registering their UPI ID.
2. If users have accounts in different banks, they can operate these accounts using a single app.
3. A user can transfer up to INR 1 lakh in a single transaction.
4. A user can schedule transactions such as bills and rents for convenience.
5. A user can use UPI to transfer funds 24*7.
6. All UPI transactions are linked to a user’s Aadhar Card.
7. Each transaction occurs after multiple security checks.
8. A user can transfer funds with one click.

General Limit For UPI Transactions

The NPCI has stipulated a limit for UPI transactions. The current UPI transaction limit is INR 1 lakh. This means that you can make a UPI transaction of up to 1 lakh in a single transaction. 

In March 2020, however, the NPCI issued a circular stating that the UPI transaction limit is INR 2 lakh for verified merchants. Hence, you can transfer up to INR 2 lakh in a single UPI transaction. However, this increase does not apply to other peer-to-peer (P2P) transactions like NEFT.

Similarly, the total number of UPI transactions per day is typically limited to 20. This limit varies across banks. 

UPI Transaction Limit Bank-Wise

The NCPI mandated each bank to set its own UPI transaction limits. While some banks use this feature to allow their customers to transfer as many funds as they want (under INR. 1 lakh), some banks have reduced the transaction limit to protect their customers from illegal withdrawals in case of device theft. 

Hence, the UPI transaction limit is different for different banks. It could be INR 10,000 to INR 1 lakh. If your bank allows you to transfer INR 50,000 a day in not more than five transactions, you will not be able to exceed the amount or number of transactions.

UPI AutoPay Feature 

Most UPI apps have a provision that allows users to schedule their payments. NPCI created this feature to help UPI users pay recurring payments such as electricity bills, EMI, OTT subscription charges, rent, etc. This feature is called AutoPay. 

The UPI and NPCI websites have not declared whether or not these charges will be included in the UPI transaction limits.

UPI Transaction Limits On Different UPI-Enabled Apps

As with banks, different UPI apps have different transaction limits.

• UPI Transaction Limit On Google Pay

Google Pay or GPay is one of the most commonly used UPI apps. These are the different UPI transaction limits in this app:

• A user can transfer up to INR 1 lakh in one day in a single transaction.
• A user can transfer funds up to 10 times across all UPI apps.
• A user can request up to INR 2,000 from other parties.

• UPI Transaction Limit On Phonepe

PhonePe is a popular UPI app that allows instant payment across different channels. These are the different UPI transaction limits for this app:

• A user can transfer up to INR 1 lakh in one day in a single transaction.
• A user can transfer funds up to 20 times across all UPI apps.
• A user can request up to INR 2,000 per day.

• UPI Transaction Limit On BHIM App

The Government of India launched the Bharat Interface for Money (BHIM) app to facilitate easy fund transfers. It allows fund transfers even if the users have a basic mobile device that does not support internet connectivity. Here are the different UPI transaction limits for this app:

• A user can send up to INR 1 lakh per day in a single transaction.
• A user can transfer funds up to 10 times per day across all UPI apps.
• In case of offline transfers, the receiver should also have an active BHIM account.

UPI has made everyone’s life extremely easy. There is no need for you to carry cash every time you step out or cancel a purchase because you do not have enough liquid cash. Within the UPI transaction limit, you can perform any transaction. 

Moreover, with the UPI AutoPay feature, there is little chance of you having to miss out on a payment. This will enable you to enjoy uninterrupted services. 

UPI, along with NEFT and RTGS, has revolutionised the world of money transfer. It is also a matter of pride that India is the first country that has implemented UPI and has advanced this platform in so many ways. When used properly, UPI can grant you unending freedom.

FAQs on UPI transactions

What permissions are required to use UPI apps?

You must have a bank account with a registered bank on the UPI network. Your mobile number should be registered with the bank. When you download a UPI app using a device that has the same phone number, the bank will send you a One-Time Password (OTP). After you verify the app using the OTP, a Virtual Payment Address (VPA) will be created.

Is a separate KYC required to use the UPI feature?

UPI does not need a separate KYC.

Can I reduce the existing UPI transaction limit?

Certain banks allow their customers to limit their transaction amount and the number of transactions. You can find this out by visiting your bank’s website.

What are the charges levied on the UPI transactions?

There are no charges for UPI transactions.

What is the UPI limit for international transactions?

You cannot make international transactions on UPI platforms.