Introduction to UPI The Unified Payments Interface (UPI) has revolutionized India’s payment landscape, offering a seamless, instant, and secure platform for financial transactions. Developed by the National Payments Corporation of India (NPCI), UPI facilitates real-time peer-to-peer (P2P) and person-to-merchant (P2M) transactions across banks, regulated by the Reserve Bank of India (RBI).
- Instant, 24x7x365 money transfers.
- Transactions based on Virtual Payment Address (VPA), eliminating the need for bank account details.
- Enhanced security through a two-factor authentication mechanism.
- Widely accepted by merchants, both online and offline, as well as government services.
- Accessible via user-friendly mobile apps.
Understanding UPI Transaction Limits The UPI transaction limits represent the maximum amount individuals can transfer through the system in a single transaction or within a day. Mandated by the NPCI, the daily transaction limit across all banks in India is set at Rs. 1 lakh. New users typically start with an initial limit, often around Rs. 5,000 for the first 24 hours, which can be increased based on transaction history and risk profile.
- Bank account-to-bank account (B2BA) transactions are typically free.
- Person-to-merchant (P2M) transactions below Rs. 2,000 are free for customers, with an interchange fee applying beyond that threshold.
- Merchant-to-merchant (M2M) transactions may also incur an interchange fee.
Transaction Limits on Popular UPI Platforms Let’s explore the transaction limits for prominent UPI platforms such as Google Pay (GPay), PhonePe, Paytm, and the BHIM app:
- Google Pay: Maximum transaction limit of Rs. 1 lakh per transaction, with new users starting at a lower initial limit.
- PhonePe: Similar to GPay, PhonePe also has a maximum transaction limit of Rs. 1 lakh per transaction, with new users beginning with a lower initial limit.
- Paytm: Maximum transaction limit of Rs. 1 lakh per transaction, with new users commencing with a lower initial limit.
- BHIM App: Like other platforms, the BHIM app maintains a maximum transaction limit of Rs. 1 lakh per transaction, with new users typically having a lower initial limit.
Conclusion In conclusion, UPI serves as India’s catalyst for digital evolution, offering secure and convenient payment solutions. With carefully managed transaction limits and charges, UPI continues to drive India towards a cashless economy, empowering millions of users nationwide.
FAQs on UPI Transaction Limits
- How can I check my UPI transaction limit?
- Open your UPI app, navigate to the “Settings” or “Profile” section, and look for the “UPI Transaction Limit” option to view your limit.
- How do I increase my UPI transaction limit?
- Contact your bank, provide necessary details, and request an increase in your transaction limit, which the bank may approve based on your usage patterns and risk assessment.
- Can I change my UPI transaction limit?
- Yes, you can request a change in your UPI transaction limit by contacting your bank and providing relevant details, including the desired new limit.
- How do I set my UPI transaction limit?
- Reach out to your bank, furnish required information along with your preferred transaction limit, and the bank will adjust your UPI transaction limit accordingly.
