UPI Transaction Limit vs UPI Charges

The Unified Payments Interface (UPI) has become one of India's most widely used digital payment methods, enabling instant bank-to-bank payments through mobile apps. However, the amount you can send through UPI is not governed by one universal limit for every user.

The UPI transaction limit depends on factors such as the bank account linked to your UPI ID, transaction type, merchant category, the UPI app or payment channel being used, and the bank's internal risk and security policies.

For most regular UPI payments, the commonly applicable limit is up to ₹1 lakh, while NPCI has enabled higher limits for specified verified merchant categories, with some eligible transactions supporting up to ₹5 lakh per transaction. Banks can still set lower internal limits within the applicable NPCI framework.

This guide explains the latest UPI transaction limits, bank-wise limits, UPI app limits, higher limits for specific categories, and the new UPI Merchant Discount Rate (MDR) framework applicable from 15 October 2026.

What Is a UPI Transaction Limit?

A UPI transaction limit is the maximum amount that can be transferred or paid through UPI in a single transaction or within a specified period.

There are two limits users should understand:

• 

  Per-transaction limit: The maximum amount that can be sent in one UPI transaction.

• 

  Daily limit: The maximum cumulative amount that can be transferred through UPI within the applicable 24-hour period.

Your bank may also impose transaction-count or security limits. Therefore, the amount displayed by your UPI app can sometimes be lower than the maximum permitted under NPCI's framework.

Regular UPI Transaction Limit in 26-27?

For most regular UPI transactions, the commonly applicable limit is ₹1 lakh.

However, higher limits are available for certain categories of payments made to eligible verified merchants. NPCI's framework allows enhanced limits for specified categories, while individual banks can apply lower internal limits based on their policies.

Overview on UPI transaction limits

The exact cumulative daily limit can differ by category. For example, Google Pay's current UPI guidance lists a ₹5 lakh per-transaction limit and ₹10 lakh total daily limit for several verified merchant categories, while some categories have different cumulative limits.

Important: A ₹5 lakh NPCI ceiling does not automatically mean every user can make a ₹5 lakh payment. The linked bank can impose a lower limit.

UPI Limit for Education and Healthcare

UPI has higher transaction limits for certain essential and high-value merchant categories.

Payments to eligible hospitals and educational institutions can support transactions of up to ₹5 lakh, subject to the applicable merchant verification, bank limits and transaction rules.

This is particularly useful for high-value payments such as:

• 

  School and college fees

• 

  Hospital bills

• 

  Medical payments

• 

  Admission-related payments

• 

  Other eligible institutional payments

The higher limit is not applicable automatically to every education or healthcare payment. The merchant and transaction must fall under the applicable category and meet the required conditions.

Daily UPI Transaction Limit vs Per-Transaction Limit

These two limits are often confused.

For example, if your bank allows:

• 

  ₹1 lakh per transaction

• 

  ₹1 lakh total per day

you cannot make two ₹1 lakh transactions on the same day.

On the other hand, some eligible verified merchant categories have higher cumulative daily limits. Google Pay's current guidance, for example, lists ₹5 lakh per transaction and ₹10 lakh daily for several eligible categories.

Therefore, always check both the per-transaction limit and daily cumulative limit applicable to your bank and transaction category.

UPI Transaction Limit set by Banks in India

UPI limits can vary considerably between banks. The following table provides current published limits for selected major banks based on Google Pay's issuing-bank UPI limit information.

*HDFC Bank's published Google Pay information notes a ₹5,000 limit for certain new customers.

These figures are based on currently published issuing-bank information and can change as banks update their policies.

Why does my bank's UPI limit differ?

The UPI limit displayed to you may be lower than the maximum NPCI limit because banks can set their own internal limits based on:

• Account type

• Customer profile

• Transaction category

• Fraud and risk controls

• Security policies

• Recent account or UPI registration

• Bank-specific transaction limits

NPCI specifically allows member banks to set internal limits within the overall ceilings prescribed by NPCI.

UPI App Transaction Limits: Google Pay, PhonePe, Paytm & BHIM

A common misconception is that every UPI app has its own separate ₹1 lakh or ₹5 lakh limit.

In reality, the linked bank account and transaction category play a major role. The app is the interface through which the payment is initiated, while the issuing bank and applicable UPI rules determine the permitted amount.

Google Pay currently states that standard P2P payments can be up to ₹1 lakh from a single bank account within 24 hours, subject to bank and transaction-count restrictions.

Paytm's latest guidance similarly states that most standard UPI transactions can be up to ₹1 lakh per transaction, subject to the user's bank and transaction category. Paytm also states that it does not set a separate universal UPI limit independent of the bank.

PhonePe's UPI terms state that transaction limits may be determined by PhonePe, the user's issuer bank, payment participants or applicable law.

BHIM currently states a ₹40,000 per-transaction and ₹40,000 daily limit for users on the BHIM app, while noting that the linked bank's limit may be different.

Therefore, using a different UPI app does not necessarily increase your bank account's UPI limit.

What Is the Maximum UPI Transaction Limit?

A common misconception is that every UPI app has its own separate ₹1 lakh or ₹5 lakh limit.

There is no single maximum amount that applies to every UPI payment.

For regular transactions, ₹1 lakh is the commonly applicable limit. However, specified verified merchant categories can support higher transaction values, with NPCI allowing up to ₹5 lakh per transaction for several categories.

1. Your bank's UPI limit

2. The transaction category

3. Whether the merchant is eligible/verified

4. The daily cumulative limit

5. Bank-specific risk controls

Is There a ₹5 Lakh UPI Transaction Limit?

Yes, but not for every UPI transaction.

NPCI has enabled higher per-transaction limits for specified categories. Eligible payments such as tax payments, certain healthcare and education payments, insurance, capital-market transactions and other specified verified merchant categories can support higher limits, subject to the applicable category and bank restrictions.

So, ₹5 lakh should not be interpreted as a universal UPI transfer limit.

Is There a ₹10 Lakh UPI Transaction Limit?

A ₹10 lakh figure can appear as a daily cumulative limit for certain eligible merchant categories, but it is not a universal UPI transaction limit.

For example, Google Pay currently lists ₹5 lakh per transaction and ₹10 lakh daily for several verified merchant categories. Other categories have different daily limits.

For regular P2P transactions, the commonly applicable limit remains much lower.

Understanding UPI Charges (MDR): What It Means for You

Keeping in mind the festive season, NPCI has updated the implementation schedule: the new Merchant Discount Rate (MDR) framework for specified UPI merchant transactions will now come into effect post-Diwali, on a date to be notified separately.

The important point for consumers is that UPI remains free for person-to-person (P2P) payments, while merchant payments up to ₹2,000 also remain free of MDR.

1. For Consumers: P2P UPI Payments Remain Free

   • 

     Zero charges for P2P: Sending money to friends or family through UPI remains completely free, regardless of the amount transferred.

   • 

     Merchant payments up to ₹2,000: P2M transactions up to ₹2,000 remain free of MDR.

   • 

     No MDR for customers: MDR is a merchant-side payment ecosystem charge, not a fee charged to consumers for making UPI payments.

   • 

     Banks have been advised to ensure that merchants do not pass MDR on to customers, while UPI application providers are prohibited from imposing platform or hidden charges in this context.

2. For Local Shops and Small Merchants

   Small merchants covered under the Person-to-Person-Merchant (P2PM) category will continue to receive zero MDR on UPI QR transactions when they receive up to ₹1 lakh per month through the applicable framework.

   This protects small businesses such as neighbourhood shops and street vendors from additional payment costs.

   In addition, all P2M UPI payments up to ₹2,000 remain free of MDR, regardless of whether the merchant falls under the P2PM category.

3. For Larger Merchant Transactions Above ₹2,000

   For specified P2M transactions above ₹2,000:

   • 

     Standard merchant transactions: MDR of 0.4% applies.

   • 

     Transactions of ₹75,000 and above: MDR is capped at ₹300 per transaction.

   • 

     Essential and thin-margin sectors: Transactions above ₹2,000 in sectors such as railways, telecommunications, insurance, fuel and agricultural inputs attract a flat ₹5 MDR per transaction.

   • 

     Capital-market transactions: Payments relating to mutual funds, securities, stockbrokers and dealers attract 0.02% MDR, capped at ₹300 per transaction.

4. What Does This Mean for a ₹10,000 UPI Payment?

   For a specified merchant transaction of ₹10,000:

   ₹10,000 × 0.4% = ₹40 MDR

   For a ₹1 lakh transaction:

   ₹1,00,000 × 0.4% = ₹400

   However, because MDR is capped at ₹300 for transactions of ₹75,000 and above, the applicable MDR would be ₹300 per transaction under the new framework.

5. Why Is the MDR Framework Being Introduced?

   MDR is a charge within the payment ecosystem and is distributed among participating entities, including banks, payment service providers and UPI application providers. The Government has stated that the framework is intended to support the continued operation and expansion of the UPI ecosystem while protecting consumers and small merchants from additional charges.

   The impact is also limited in scale: the Government estimates that MDR will apply to only about 4% of merchant transactions, meaning approximately 96% of P2M transactions will remain unaffected.

Important: ₹2,000 Is Not the UPI Transaction Limit

The ₹2,000 threshold should not be confused with the UPI transaction limit.

It does not mean that users cannot make UPI payments above ₹2,000. UPI transaction limits are determined separately by factors such as the bank, transaction category and applicable NPCI limits.

The ₹2,000 figure in this section refers specifically to the MDR framework for merchant transactions.

How Many UPI Transactions Can You Make in a Day?

There is no single transaction-count rule that applies identically to every bank and UPI use case.

Google Pay currently states that standard P2P users may be restricted after 20 successful payments in 24 hours, along with a 150-payment limit over 30 days for the relevant Google Pay use case. Banks and other UPI participants can apply additional restrictions.

Therefore, users should distinguish between:

• 

  Amount limit

• 

  Number-of-transactions limit

• 

  Daily cumulative limit

• 

  Bank-specific risk controls

A payment can fail because of any one of these limits even when the transaction amount itself is below ₹1 lakh.

What Happens If You Reach Your UPI Limit?

If you reach your bank or UPI transaction limit, the payment may be declined.

Depending on the reason, you may need to:

1. Wait until the applicable limit resets.

2. Use another eligible bank account.

3. Make a smaller payment if permitted.

4. Check whether your bank has imposed a lower limit.

5. Contact your bank if the payment is being blocked despite being within the stated limit.

Changing the UPI app alone may not solve the problem because the linked bank account can determine the applicable limit.

Latest UPI Statistics in India

UPI continues to operate at a very large scale.

According to NPCI's September 2026 statistics:

This represents the scale at which India's UPI ecosystem is now operating.

How Does UPI Work?

UPI connects bank accounts through a single interoperable payment infrastructure.

A typical UPI payment works as follows:

1. The customer selects a UPI app.

2. The customer chooses a bank account linked to UPI.

3. The payment is initiated using a UPI ID, QR code, mobile number or other supported method.

4. The customer authenticates the payment using a UPI PIN where required.

5. The transaction is processed through the UPI ecosystem.

6. The amount is debited from the customer's bank account.

7. The merchant or recipient receives the funds in the linked account.

Because UPI connects participating banks and payment applications, users can generally transact across different UPI apps and participating banks.

Benefits of UPI Payments

UPI has become popular because it combines convenience with instant account-to-account payments.

Key benefits include:

• 

  Instant payments: UPI enables real-time digital payments without requiring customers to manually enter bank account details for every transaction.

• 

  Multiple payment options: Users can make payments through UPI IDs, QR codes and other supported payment methods.

• 

  24x7 availability: UPI is designed for round-the-clock digital payments.

• 

  Interoperability: Customers can use different UPI apps while paying merchants or individuals whose accounts are connected to participating banks.

• 

  Suitable for businesses: Businesses can use UPI for online checkout, QR payments, collections, recurring payments and other digital payment use cases.

Conclusion

The UPI transaction limit in 2026 is not one fixed number for every user.

For regular UPI payments, ₹1 lakh is the commonly applicable limit, while specified verified merchant categories can support higher transaction values, including up to ₹5 lakh per transaction. Banks can apply their own lower internal limits, which is why two users using the same UPI app may have different payment limits.

It is also important to separate UPI limits from UPI charges. The ₹2,000 threshold in the new MDR framework is not a maximum UPI payment limit. From 15 October 2026, specified merchant transactions above ₹2,000 attract the applicable MDR, while P2P payments remain free and P2M transactions up to ₹2,000 remain free of MDR.

For businesses, understanding these limits is particularly important when choosing a payment infrastructure that can support high-value transactions, multiple payment modes, reliable transaction processing and effective reconciliation.

FAQ's

What's the UPI transaction limit?

For most regular UPI transactions, the commonly applicable limit is ₹1 lakh, but the actual limit depends on the bank, transaction type and account. Specified verified merchant categories can support higher limits, including up to ₹5 lakh per transaction.

What is the daily UPI limit?

There is no single daily limit for every UPI transaction. For standard P2P payments, ₹1 lakh is commonly applicable, while bank-specific and category-specific limits can be different.

Can I make a ₹5 lakh payment through UPI?

Yes, for certain eligible transaction categories and verified merchants, subject to the applicable bank and daily limits. A ₹5 lakh limit does not apply universally to all UPI payments.

Can I transfer ₹5 lakh to another person through UPI?

The higher NPCI limits apply to specified categories and verified merchants. P2P transactions continue under the existing framework, so you should not assume that the ₹5 lakh merchant limit applies to person-to-person transfers.

Is ₹2,000 the maximum UPI payment limit?

No. ₹2,000 is not a UPI payment limit. From 15 October 2026, it is relevant to the MDR framework for specified merchant transactions.

Will UPI payments above ₹2,000 be charged to customers?

The new MDR is a merchant-side ecosystem charge, not a direct customer fee. P2P transactions remain free, and P2M transactions up to ₹2,000 remain free of MDR under the announced framework.

Is there a ₹1 lakh UPI limit on every transaction?

No. ₹1 lakh is the commonly applicable limit for regular transactions, but banks may set lower limits and specified verified merchant categories can have higher limits.

Which bank has the highest UPI transaction limit?

There is no single bank that can be identified as having the highest UPI limit for every transaction type. Limits vary by bank, account, transaction category and applicable UPI rules.

Does changing my UPI app increase my UPI limit?

Not necessarily. Your linked bank account and transaction category are major factors. Changing from one UPI app to another does not automatically increase the bank's limit.

What is the UPI limit for education and hospital payments?

Eligible education and hospital payments can support up to ₹5 lakh per transaction, subject to verified-merchant requirements and the applicable bank and category limits.

What is the UPI limit for new users?

Some banks and UPI apps may impose temporary security restrictions for newly registered users. For example, Google Pay currently states that new users may be limited to ₹5,000 during the initial period. Such restrictions can vary by bank and platform.

Is UPI free in 2026?

UPI remains free for P2P transactions, while P2M transactions up to ₹2,000 remain free of MDR. From 15 October 2026, specified merchant transactions above ₹2,000 are subject to the announced MDR framework. The MDR is not intended to be a direct customer charge.