India UPI limits: Gpay, Phonepe, Paytm, BHIM App

Welcome to the transformative world of UPI, India’s trailblazing instant payment system that’s taking the global digital payment landscape by storm. Imagine having the power to effortlessly transact across borders, as UPI’s magic has already reached countries like France, UAE, Saudi Arabia, and more. Indians can now harness UPI’s prowess to make payments abroad, mirroring their domestic experience.

In July 2023, UPI achieved a remarkable feat, orchestrating a staggering 9.96 billion transactions valued at Rs 15.34 lakh crore. This showcased a remarkable 6.6% surge in transactions compared to June’s 9.34 billion, while transaction value soared 4% from June’s Rs 14.75 lakh crore. This monumental growth is driven by India’s fervent embrace of digital payments, empowered by UPI’s secure and convenient framework, seamlessly integrated into numerous mobile apps.

The impetus behind UPI’s ascent is further bolstered by governmental support, evident through initiatives like the UPI transaction cashback scheme. These strategic moves align with broader efforts to catalyze economic progress through digital transactions. As consumer spending in India sets its sights on surpassing $4 trillion by 2030, as forecasted by e-commerce enablement platform Shiprocket, UPI reigns supreme as the preferred prepaid option, leading ahead of credit cards and other payment avenues such as wallets, net banking, and debit cards.

This newfound momentum in digital commerce paints a vivid portrait of evolving preferences, with around 80% of consumers opting for online marketplaces. The pulse of shopping trends reveals that fashion & accessories (48%) emerge as the most sought-after category, trailed by electronics (32%) and groceries (30%).

In this ambitious journey, India’s trajectory aligns with its aspiration to reign as a global digital payment maestro. Fueled by groundbreaking systems and a burgeoning community of internet enthusiasts, India is carving its path to the forefront of the digital payment revolution. Let’s explore the intricacies of UPI, unlock its potential, and chart your way into the future of payments.

What is UPI?

Unified Payments Interface (UPI) is an instant real-time payment system developed by the National Payments Corporation of India (NPCI) facilitating inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. The interface is regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between two bank accounts on a mobile platform.

UPI uses a single identifier, the Virtual Payment Address (VPA), a combination of the user’s name and mobile number. This eliminates the need to remember multiple bank account numbers and IFSC codes. UPI also offers a two-factor authentication mechanism for added security.

UPI was launched in 2016 and has become one of India’s most popular payment methods. Over 250 million users use it, facilitating over 5 billion monthly transactions. UPI is a convenient, secure, and efficient way to make payments, and it has revolutionized the way Indians pay for goods and services.

Key features of UPI:

  • Instant money transfers: UPI transfers are processed instantly, 24x7x365.

  • No bank account details are required: You only need the VPA of the recipient to make a transfer.

  • Two-factor authentication: UPI offers a two-factor authentication mechanism for added security.

  • Wide acceptance: UPI is accepted by many merchants, including online stores, brick-and-mortar stores, and government services.

  • Easy to use: UPI is easy to use and can be accessed through various mobile apps.

UPI is a game-changer for the Indian payments landscape. It has made payments more accessible, faster, and more secure. UPI is poised to become the dominant payment method in India in the coming years.

UPI charges?

  • UPI charges depend on the type of transaction and the merchant category.

  • Bank account-to-bank account (B2BA) transactions are free for customers and merchants.

  • Person-to-merchant (P2M) transactions are free for customers for up to Rs. 2,000. For transactions above Rs. 2,000, an interchange fee of 1.1% is charged to the merchant. The merchant pays the interchange fee to the payment service provider (PSP), which is the company that facilitates the UPI transaction.

Merchant-to-merchant (M2M) transactions are also free for customers. However, an interchange fee of 0.5% is charged to the merchant for all M2M transactions.

The interchange fee is a standard fee for all payment transactions. It covers the costs of operating the payment system and providing customer support. The interchange fee is not a profit for the PSPs.

It is important to note that the UPI charges may vary depending on the bank and the PSP. It is always best to check with your bank or the PSP for the latest charges.

Here are some additional details about UPI charges:

  • The interchange fee for P2M transactions above Rs. 2,000 applies to all merchant categories.

  • The interchange fee for M2M transactions applies to the following merchant categories.

        1.Fuel

        2.Post office

        3.Telecom

        4.Utilities

        5.Agriculture and education

        6.Supermarket

        7.Insurance, mutual funds, government, and railways

  • The National Payments Corporation of India (NPCI) reviews the interchange fee every six months.

What is UPI transaction limit?

The UPI transaction limit, determined by the National Payments Corporation of India (NPCI), dictates the maximum amount that can be transferred through UPI daily. For all banks, the daily UPI transaction limit is ₹1 lakh (Rs 100,000), while new users begin with a limit of ₹5,000 for the first 24 hours.

Banks can raise the UPI transaction limit based on the customer’s risk profile. To initiate an increase, the customer can reach out to their bank and submit a request. The bank will then evaluate the customer’s risk profile and may choose to elevate the UPI transaction limit accordingly.

Understanding that the UPI transaction limit is distinct from the bank account balance is crucial. While the transaction limit signifies the highest amount that can be transferred via UPI within a day, the bank account balance represents the available funds. Once the UPI transaction limit is met, further UPI transactions will be temporarily suspended until the following day. Nonetheless, users can perform bank transfers using NEFT or RTGS, which offer higher transaction thresholds

UPI Transaction Limits: A Look at Leading Indian Apps

1. Google Pay UPI Transactions Limit

The maximum UPI transaction limit for Google Pay stands at ₹1 lakh (Rs 100,000) across all banks, allowing users to send or receive up to this amount daily. For new users, an initial UPI transaction limit of ₹5,000 is applicable for the first 24 hours.

Customers can increase their Google Pay UPI transaction limit based on their risk profile, as determined by their bank. To do so, they should contact their bank and request a limit expansion. The bank will then evaluate the customer’s risk profile to grant a higher Google Pay UPI transaction limit potentially.

It’s crucial to differentiate between the Google Pay UPI transaction limit and the bank account balance. While the former signifies the maximum sum transacting through Google Pay UPI in a single day, the latter represents the overall available funds in the bank account. Hitting the Google Pay UPI transaction limit would temporarily halt further transactions until the next day. However, users can still utilize bank transfers via NEFT or RTGS, offering higher transaction thresholds

2. Paytm UPI Transactions limit

Paytm UPI transactions adhere to a daily limit of Rs. 1 lakh (Rs. 100,000) for all users, with new users initially limited to Rs. 5,000 within the first 24 hours.

Customers can extend their Paytm UPI transaction cap, contingent on their risk evaluation by the bank. To achieve this, customers can engage their bank and formally request a transaction limit increase. The bank will then evaluate the customer’s risk profile before potentially enhancing the Paytm UPI transaction ceiling.

It’s important to distinguish the Paytm UPI transaction limit from the bank account balance. The transaction limit denotes the highest sum that can be transferred through Paytm UPI in a day, while the bank account balance represents the total funds available in the account. Once the Paytm UPI transaction limit is reached, further transactions will be suspended until the following day. However, users can still execute bank transfers through NEFT or RTGS, offering more generous transaction thresholds.

3. Phonepe UPI Transactions Limit

The PhonePe UPI transaction limit is Rs. 1 lakh (Rs 100,000) daily for all users. This limit applies to both P2P and P2M transactions. The PhonePe UPI transaction limit is set by the National Payments Corporation of India (NPCI).

The bank can increase the PhonePe UPI transaction limit, subject to the customer’s risk profile. To increase the PhonePe UPI transaction limit, the customer can contact their bank and request an increase. The bank will assess the customer’s risk profile and may increase the PhonePe UPI transaction limit.

If the PhonePe UPI transaction limit is reached, the user will not be able to make any further PhonePe UPI transactions until the next day. The user can still make bank transfers through NEFT or RTGS, which have higher transaction limits.

4. BHIM UPI Transactions Limit

The BHIM UPI transaction limit is set by the National Payments Corporation of India (NPCI). The daily transaction limit for BHIM UPI is ₹1 lakh (Rs 100,000) for all banks. The BHIM UPI transaction limit for new users is ₹5,000 for the first 24 hours.

The bank can increase the BHIM UPI transaction limit, subject to the customer’s risk profile. To increase the BHIM UPI transaction limit, the customer can contact their bank and request an increase. The bank will assess the customer’s risk profile and may increase the BHIM UPI transaction limit.

Once the user reaches the BHIM UPI transaction limit, they can initiate additional BHIM UPI transactions the following day. However, they retain the ability to perform bank transfers through NEFT or RTGS, both of which offer higher transaction limits.

Here are some additional details about the BHIM UPI transaction limit:

  • The BHIM UPI transaction limit applies to all BHIM UPI apps, including Google Pay, Paytm, and PhonePe.

  • The BHIM UPI transaction limit applies to both P2P and P2M transactions.

  • The BHIM UPI transaction limit is reviewed every six months by the NPCI.

In conclusion

In the dynamic landscape of digital payments, UPI stands as India’s transformative force, sweeping across borders and catalyzing a digital revolution. With UPI’s remarkable growth in July 2023, witnessing a surge in transactions and value, India’s embrace of this secure and convenient system is unmistakable. Empowered by governmental support and strategic initiatives, UPI has secured its place as the leading payment choice, propelling India towards a $4 trillion consumer spending horizon. As UPI reshapes shopping trends and amplifies online commerce, it epitomizes India’s ascent as a global digital payment trailblazer. UPI’s journey, shaped by innovation and enthusiasm, promises to redefine the future of payments.

FAQ’s

1. How to check the UPI transaction limit?

To check your UPI transaction limit, you can follow these steps:

  • Open the UPI app that you use.

  • Go to the “Settings” or “Profile” tab.

  • Find the “UPI Transaction Limit” option.

  • The UPI transaction limit will be displayed.

2. How to increase the UPI transaction limit?

  • Contact your bank.

  • Provide your bank with the following information:

        1.Your name

        2.Your account number

        3.Your UPI ID

  • Your bank will assess your request and may increase your UPI transaction limit.

3. How to change the UPI transaction limit?

To change your UPI transaction limit, you can follow these steps:

  • Contact your bank.

  • Provide your bank with the following information:

        1.Your name

        2.Your account number

        3.Your UPI ID

        4.The new UPI transaction limit that you want to set

  • Your bank will change your UPI transaction limit.

4. How to set UPI transaction limit?

To set your UPI transaction limit, you can follow these steps:

  • Contact your bank.

  • Provide your bank with the following information:

        1.Your name

        2.Your account number

        3.The UPI transaction limit that you want to set

  • Your bank will set your UPI transaction limit.