Understanding UPI transaction limits and their banking implications

UPI, or Unified Payments Interface, is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows users to make instant payments to merchants and individuals using their bank accounts. UPI has become India’s most popular payment method, with over 250 million users.

The NPCI sets UPI transaction limits. The daily UPI transaction limit for all users is Rs. 1 lakh (Rs 100,000). This limit applies to both P2P and P2M transactions. The daily transaction limit for new users is Rs. 5,000.

There are a few reasons for UPI transaction limits. One reason is to protect users from fraud. By limiting the amount of money that can be transferred in a day, UPI helps to reduce the risk of fraud. Another reason for UPI transaction limits is to manage liquidity. By limiting the amount of money that can be transferred in a day, UPI helps to ensure that banks have enough liquidity to meet customer demands..

UPI transaction limits have implications for banks. Banks need to be aware of the UPI transaction limits when processing payments. They also need to have systems in place to manage UPI transactions and to prevent fraud.

Additional facts about UPI:

  • The UPI ecosystem in India has increased in recent years. In October2023, UPI processed 11 billion transactions valued at Rs.17.16 lakh crore.

  • The number of UPI users in India is expected to reach 500 million by 2025.

  • UPI is India's most popular payment method for P2P and P2M transactions.

  • UPI is a secure, cost-effective payment method for both banks and merchants.

Why UPI?

Unified Payments Interface (UPI) is an instant payment system by the National Payments Corporation of India (NPCI). UPI empowers seamless transactions, offering convenience, security, and speed. Utilizing mobile phones, users make instant payments to both merchants and individuals. With over 250 million users, UPI's popularity stems from its accessibility, robust security with two-factor authentication, swift processing, and affordability—no transaction fees for P2P transactions under Rs. 2,000.

The benefits of UPI extend further

  • UPI is available 24/7, ensuring payment flexibility.

  • It's embraced by various merchants and services, both online and offline.

  • UPI's user-friendly nature caters to all levels of tech familiarity.

  • Security is reinforced with two-factor authentication.

  • UPI is cost-effective, enhancing its appeal to the masses.

UPI's journey toward dominance is apparent in revolutionizing India's payment landscape.

How UPI works and Its uniqueness for online money transfer

  • Mobile devices facilitate 24/7 money transfers.

  • One mobile application grants access to multiple bank accounts.

  • It aligns with regulatory guidelines while offering seamless single-click payments.

  • Incremental security is ensured through the customer's virtual address for Pull & Push transactions, eliminating the need for card numbers, account numbers, or IFSC codes.

  • Any QR code suffices for UPI transactions.

  • Accepting payments via a single application or in-app is possible.

  • Multiple billing payments, including utility bills via QR codes (scan and pay) and over-the-counter payments, can be executed..

  • It scales effectively for donations, collections, and disbursements.

  • Raising a complaint is straight forward via the mobile app.

The UPI transaction engages the following parties

  • 1. NPCI

  • 2. Remitter Bank

  • 3. Beneficiary Bank

  • 4. Payee PSP

  • 5. Payer PSP

  • 6. Bank Account Holders

  • 7. Merchants

Using UPI as a payment method entails transaction limits

Easebuzz enables diverse payment methods for your customers, each with distinct transaction limits due to regulations from Indian banking partners.

NPCI, the RBI-regulated entity behind UPI, has set a Rupees 1 Lakh transaction limit.

In 2022, UPI's transaction limits saw an increase for IPOs (Initial Public Offerings) and RDSs (Retail Direct Scheme).

The NPCI circular on December 9, 2021, establishes a maximum limit of five lakh rupees for UPI transactions. Initial Public Offerings (IPO) and Retail Direct Schemes (RDS) are capped at five lakhs rupees:

UPI transaction category UPI transaction type UPI transaction limits
P2P/P2PM

QR share, Pay, and Collect, Share Intent Link

Indian Rupee 2000/-

P2M

Offline Non-verified, QR share, Pay, and Collect, Share Intent Link

Indian Rupee 2000/-

P2P/P2PM

Pay

Indian Rupee 1,00,000/-

P2M

All

Indian Rupee 1,00,000/-

P2M

'Verified Specific Categories – OC 82, OC 96'

[Specific merchant categories]

*Please note the circular issued by NPCI on September 24, 2021, outlining essential standards for UPI transaction limits.

Here's a breakdown of UPI transaction limits based on different categories and types, denominated in Indian Rupees:

UPI Transaction Category UPI transaction type UPI transaction limits
P2P/P2PM

QR share, Pay, and Collect, Share Intent Link

Indian Rupee 2000/-

P2M

Offline Non-verified, QR share, Pay, and Collect, Share Intent Link

Indian Rupee 2000/-

P2P/P2PM

Pay

Indian Rupee 1,00,000/-

P2M

All

Indian Rupee 1,00,000/-

P2M

'Verified Specific Categories – OC 82, OC 96'

Indian Rupee 2,00,000/-

IPOs & RDS

Investment in government securities

Indian Rupee 5,00,000/-

P2PM

Small merchants and unorganized retailers

Indian Rupee 1,00,000/-

Merchant-verified status by acquiring banks includes adding a merchant to the list, encompassing specific categories like capital markets, collections, insurances, and pre-approval disbursements.

Please note UPI transaction limits may vary across banks despite RBI's efforts toward standardization.

Big News for Education & Healthcare: UPI Transaction Limit Increased to Rs 5 Lakh

Good news for students, parents, and patients! The Reserve Bank of India (RBI) has proposed a significant increase in the transaction limit for Unified Payments Interface (UPI) payments to educational institutions and hospitals. This means you can now make payments of up to Rs 5 lakh using UPI instead of the previous limit of Rs 1 lakh.

What are the benefits?

This move is expected to significantly improve the convenience and ease of making payments for education and healthcare services. Here’s how it benefits different stakeholders:

    Students and Parents:

  • Pay for higher education fees seamlessly.

  • Make large payments for boarding schools or tuition fees without requiring multiple transactions.

  • Increased flexibility and convenience when managing educational expenses.

    Hospitals and Patients:

  • Handle larger medical bills efficiently without cash or multiple transactions.

  • Make emergency payments smoothly during critical situations.

  • Enhance the overall experience for patients and improve hospital efficiency.

    Additionally, the RBI has also proposed:

  • Increasing the e-mandate limit for recurring payments to Rs 1 lakh: This will simplify payments for mutual funds, insurance premiums, and credit card bills.

  • Issuing separate instructions regarding these changes soon: Stay tuned for further details and implementation timelines.

    Overall, these changes reflect the RBI's commitment to:

  • Promote financial inclusion and ease financial transactions.

  • Adapt to the evolving digital landscape and encourage digital payments.

  • Make critical services like education and healthcare more accessible and efficient.

This is a welcome move that will benefit students, parents, patients, and healthcare institutions alike. Stay informed about the upcoming instructions and enjoy the convenience of making large payments through UPI!

    Let’s categorize UPI transaction limits as follows:

  • Maximum Transfer Amount: UPI restricts transfers to an entire sum.

  • Daily Transaction Frequency: Users can perform a specific number of UPI transactions daily.

  • Real-time UPI Network Transactions: UPI facilitates instant transactions across networks.

For instance, in SBI, daily UPI transactions can reach up to Rs 10,00,000. However, the cap for merchant and bill payments is Rs 5,00,000/-.

    Let’s categorize UPI transaction limits as follows:

  • In Canara Bank's UPI application, customers can pay and send up to Rs. 1,00,000/- per transaction daily.

The UPI transaction limits for bank of baroda with UPI ID:

Services No. of transactions in a day Minimum amount Max amount per transaction Max amount per day
Fund transfer

10

Rs. 1

Rs. 1,00,000

Rs. 1,00,000

Fund transfer (after setting/resetting UPI PIN)

1 (till 24 hrs. of the cooling period)

Rs. 1

Rs. 5,000

Rs. 5,000

IPO (ASBA)

Not Applicable

Not Applicable

Rs. 5,000

Not Applicable

USSD (*99#)

10

Rs. 1

Rs. 5,000

Rs. 5,000

Merchant transactions

10

Rs. 1

Rs. 2,000 (Online Collect for Un-verified Merchants) Rs.1,00,000 for others, Rs. 2,00,000 for Specific MCCs

Rs. 1,00,000, Rs. 6,00,000 for Specific MCCs

Axis bank UPI transaction limit, including BHIM Axis pay

Axis Bank offers a UPI transaction limit of Rupees 1,00,000/- through the BHIM Axis Pay app. The IPO limit stands at Rupees 5,00,000/-. A maximum of 10 daily transactions, including merchant and bill payments, is allowed. You can request up to rupees 2,000 per transaction, with a maximum of 5 such transactions.

Canara bank with UPI ID transactions limits:

Canara Bank sets the UPI transaction limit at Rupees 1,00,000 per transaction or day. There is no minimum transaction limit imposed.

UPI transaction limits set by banks in India

Bank Name

Bank type

Sponsor bank

UPI transaction limit

UPI daily limit

Abhyudaya Co-operative Bank

Cooperative

NA

25000

25000

Adarsh Co-op Bank Ltd

Cooperative

HDFC Bank

50000

50000

Aditya Birla Idea Payments Bank

Payments Bank

NA

100000

100000

Airtel Payments Bank

Payments Bank

NA

100000

100000

Allahabad Bank

Public Sector Bank

NA

25000

100000

Allahabad UP Gramin Bank

RRB

Allahabad

20000

40000

Andhra Bank

Public Sector Bank

NA

100000

100000

Andhra Pradesh Grameena Vikas Bank

RRB

SBI

25000

100000

Andhra Pragathi Grameena Bank

RRB

NA

10000

20000

Apna Sahakari Bank

Cooperative

NA

100000

100000

Assam Gramin VIkash Bank

RRB

United Bank of India

5000

25000

Axis Bank

Private

NA

100000

100000

Bandhan Bank

Private

NA

100000

100000

Bank Of Baroda

Public Sector Bank

NA

25000

Not set

Bank Of India

Public Sector Bank

NA

10000

100000

Bank of Maharashtra

Public Sector Bank

NA

100000

100000

Baroda Gujarat Gramin Bank

RRB

Bank of Baroda

25000

Not Set

Baroda Rajasthan Kshetriya Gramin Bank

RRB

BOB

25000

25000

Baroda Uttar Pradesh Gramin Bank

RRB

Bank of Baroda

25000

25000

Bassein Catholic Coop Bank

Cooperative

NA

20000

40000

Bhilwara Urban Co operative Bank LTD

Cooperative

HDFC

25000

25000

Bihar Gramin Bank

RRB

UCO

Merged with DBGB

Canara Bank

Public Sector Bank

NA

100000

100000

Catholic Syrian Bank

Private

NA

100000

100000

Central Bank of INDIA

Public Sector Bank

NA

100000

100000

Chaitanya Godavari Grameena Bank

RRB

Andhra Bank

25000

100000

Chhattisgarh Rajya Gramin Bank

RRB

SBI

25000

100000

Citibank Retail

Foreign Bank

NA

100000

100000

City Union Bank

Private

NA

100000

100000

COASTAL LOCAL AREA BANK LTD

Cooperative

BOM

50000

100000

Corporation Bank

Public Sector Bank

NA

50000

100000

DBS Digi Bank

Foreign Bank

NA

100000

100000

DCB Bank

Private

NA

5000

5000

Dena Bank

Public Sector Bank

NA

100000

100000

Dena Gujarat Gramin Bank

RRB

Dena

NA (Merged)

Deutsche Bank AG (Web Collect)

Foreign Bank

NA

NA

Dhanlaxmi Bank Ltd

Private

NA

100000

100000

Dombivli Nagrik  Sahakari Bank

Cooperative

NA

100000

100000

Equitas Small Finance Bank

Small Finance Bank

NA

25000

100000

ESAF Small Finance Bank

Small Finance Bank

NA

100000

100000

Federal Bank

Private

NA

100000

100000

FINO Payments Bank

Payments Bank

NA

100000

100000

G P Parsik Bank

Cooperative

NA

100000

100000

HDFC

Private

NA

100000

100000

(RS 5000 for new customer)

Himachal Pradesh Gramin Bank

RRB

PNB

50000

50000

HSBC

Foreign Bank

NA

100000

100000

Hutatma Sahakari Bank Ltd

Cooperative

ICICI Bank

100000

No limit

ICICI Bank

Private

NA

100000

100000

IDBI Bank

Public Sector Bank

NA

100000

100000

IDFC

Private

NA

25000

100000

India Post Payment Bank

Payments Bank

NA

25000

50000

Indian Bank

Public Sector Bank

NA

100000

100000

Indian Overseas Bank

Public Sector Bank

NA

50000

100000

IndusInd Bank

Private

NA

100000

100000

J&K Grameen Bank

RRB

J&K

20000

20000

Jalgaon Janata Sahakari Bank

Cooperative

NA

100000

100000

Jammu & Kashmir Bank

Private

NA

20000

20000

Jana Small Finance Bank

Small Finance Bank

NA

10000

40000

Janata Sahakari Bank Pune

Cooperative

NA

100000

100000

Jio Payments Bank

Payments Bank

NA

100000

100000

Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd.

Cooperative

NA

25000

200000

Karnataka Bank

Private

NA

100000

200000

Karnataka vikas Gramin Bank

RRB

NA

25000

25000

Karur Vysaya  Bank

Private

NA

100000

100000

Kashi Gomti Samyut Gramin Bank

RRB

NA

100000

100000

Kaveri Grameena Bank

RRB

SBI

25000

25000

Kerala Gramin Bank

RRB

NA

20000

20000

Kotak Mahindra Bank

Private

NA

100000

100000

Langpi Dehangi Rural Bank

RRB

SBI

10000

100000

Madhya Bihar Gramin Bank

RRB

PNB

25000

100000

Maharashtra Gramin Bank

RRB

BOM

25000

100000

Maharashtra state co op Bank

Cooperative

NA

5000

50000

Malwa Gramin Bank (Bank merged with Punjab Gramin Bank)

RRB

SBI

10000

25000

Manipur Rural Bank

RRB

SBI

10000

10000

Maratha co-op Bank

Cooperative

NA

100000

100000

Meghalaya Rural Bank

Foreign Bank

SBI

100000

100000

Mizoram Rural Bank

RRB

SBI

25000

100000

NKGSB Co-op. Bank Ltd.

Cooperative

NA

20000

40000

Oriental Bank of Commerce

Public Sector Bank

NA

100000

100000

Paschim Banga Gramin Bank

RRB

UCO

5000

25000

Paytm Payments Bank

Payments Bank

NA

100000

100000

Pragathi Krishna Gramin Bank

RRB

NA

20000

20000

Prathama Bank

RRB

NA

10000

50000

Punjab and Maharashtra Co. bank

Cooperative

NA

100000

100000

Punjab and Sind Bank

Public Sector Bank

NA

10000

10000

Punjab Gramin Bank

RRB

PNB

10000

25000

Punjab National Bank

Public Sector Bank

NA

25000

50000

Purvanchal Bank

RRB

SBI

25000

100000

Rajasthan Marudhara Gramin Bank

RRB

SBI

25000

25000

Rajkot Nagarik Sahakari Bank Ltd

Cooperative

NA

100000

100000

Samruddhi Co-op bank ltd

Cooperative

TJSB

100000

100000

Sarva Haryana Gramin Bank

RRB

PNB

50000

100000

Sarva UP Gramin Bank

RRB

PNB

50000

100000

Saurashtra Gramin Bank

RRB

SBI

20000

100000

Shree Kadi Nagarik Sahakari Bank Ltd.

Cooperative

Yes Bank

100000

100000

South Indian Bank

Private

NA

100000

100000

Standard Chartered

Foreign Bank

NA

100000

100000

State Bank Of India

Public Sector Bank

NA

100000

100000

Suco Souharda Sahakari bank

Cooperative

ICICI Bank

100000

100000

Suryoday Small Finance Bank Ltd

Small Finance Bank

NA

100000

100000

Suvarnayug Sahakari Bank ltd

Cooperative

HDFC

100000

100000

Syndicate Bank

Public Sector Bank

NA

10000

100000

Tamilnadu Mercantile Bank

Private

NA

100000

100000

Telangana Gramin Bank

RRB

SBI

25000

100000

Telangana State Co Operative Apex Bank

Cooperative

IDBI

10000

100000

Thane Bharat Sahakari Bank

Cooperative

NA

100000

100000

The Cosmos Co-Operative Bank LTD

Cooperative

NA

10000

50000

The A.P. Mahesh Co-Operative Urban Bank

Cooperative

NA

25000

25000

The Ahmedabad District Co-operative Bank Ltd

Cooperative

GSCB

10000

25000

The Ahmedabad Mercantile Co-op Bank Ltd

Cooperative

HDFC Bank

100000

100000

The Andhra Pradesh state cooperative

Cooperative

NA

10000

100000

The Baroda Central Co-operative bank ltd.

Cooperative

GSCB

15000

100000

The Gujarat State Co-operative Bank Limited

Cooperative

NA

50000

100000

The Hasti Co-operative Bank Ltd

Cooperative

NA

100000

100000

The Kalyan Janata Sahakari Bank

Cooperative

NA

100000

100000

The Lakshmi Vilas Bank Limited

Private

NA

100000

100000

The Mahanagar Co-op. Bank Ltd

Cooperative

NA

25000

50000

The Malad Sahakari Bank Ltd.

Cooperative

PMCO

10000

50000

The Mehsana Urban Co-Operative Bank

Cooperative

NA

100000

100000

The Municipal Co-op Bank Ltd.

Cooperative

NA

5000

50000

The Muslim Co-Operative Bank Ltd

Cooperative

HDFC

100000

100000

The Nainital Bank Ltd

Private

NA

20000

40000

The Ratnakar Bank Limited

Private

NA

25000

25000

The Saraswat Co-Operative Bank

Cooperative

NA

100000

100000

The Surat Peoples Co Op. Bank Ltd

Cooperative

NA

25000

100000

The Sutex Co op Bank

Cooperative

ICICI Bank

100000

100000

The SVC Co-Operative Bank Ltd

Cooperative

NA

10000

20000

The Thane Janata Sahakari Bank Ltd(TJSB)

Cooperative

NA

100000

100000

The Udaipur Mahila Samridhi Urban Co-op Bank Ltd

Cooperative

ICICI Bank

100000

100000

The Udaipur Mahila Urban Co-op Bank Ltd

Cooperative

NA

100000

100000

The Urban Cooperative Bank Ltd Dharangaon

Cooperative

ICICI Bank

20000

25000

The Varachha Co-op Bank Ltd.

Cooperative

NA

20000

40000

The Vijay Cooperative Bank Ltd

Cooperative

ICICI Bank

20000

200000

The Vishweshwar Sahakari Bank Ltd

Cooperative

NA

100000

100000

Tripura Gramin Bank

RRB

SBI

10000

10000

UCO Bank

Public Sector Bank

NA

100000

100000

Ujjivan Small Finance Bank Limited

Small Finance Bank

NA

50000

100000

Union Bank of India

Public Sector Bank

NA

100000

200000

United Bank of India

Public Sector Bank

NA

25000

60000

Uttarakhand Gramin Bank

RRB

SBI

25000

100000

Vananchal Gramin Bank

RRB

SBI

20000

20000

Vasai Vikas Co-op Bank Ltd

Cooperative

NA

100000

100000

Vijaya Bank

Public Sector Bank

NA

25000

50000

YES Bank

Private

NA

100000

100000

*Sources of data collected are official bank websites and financial statements.

FAQ's

UPI full form?

The full form of UPI is Unified Payments Interface.

What is a UPI reference number?

A UPI reference number is a 12-digit code generated for each UPI transaction. It is used to track the transaction and to resolve any issues that may arise. The UPI reference number is always prefixed with the digit 9.

How to unblock a UPI ID?

If your UPI ID is blocked, you can unblock it by following these steps:

  • Open the UPI app that you use for transactions.

  • Go to the settings menu.

  • Select "UPI ID".

  • Enter your registered mobile number and UPI PIN.

  • Tap on "Unblock UPI ID".

What is a UPI number?

A UPI number is a unique identifier for your bank account used for UPI transactions. It is also known as a virtual payment address (VPA). Your UPI number is typically your mobile number followed by "@" and your bank's name. For example, if your mobile number is 9766782222 and your bank is SBI, your UPI number would be 9766782222@sbi.

How to reset a UPI PIN?

If you forget your UPI PIN, you can reset it by following these steps:

  • Open the UPI app that you use for transactions.

  • Go to the settings menu.

  • Select "UPI PIN".

  • Tap on "Reset UPI PIN".

  • Enter your registered mobile number and OTP.

  • Enter your new UPI PIN twice.

  • Tap on "Reset PIN.".

What is a UPI PIN?

A UPI PIN is a 4-6 digit PIN used to authenticate UPI transactions. Such is required for all UPI transactions, including sending and receiving money. You can create your own UPI PIN when you register for UPI. It is essential to keep your UPI PIN safe and secure. Please do not share it with anyone.

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