UPI is the quickest and easiest payment method that has replaced all the other across the entire country of India. It does not matter whether you transfer money to buy groceries, pay your share of the dinner bill at a restaurant, or send rent to your landlord, UPI will surely accomplish it in a matter of seconds. Unfortunately, just like other regulated financial tools, UPI has its place and comes with some restrictions which include daily transfer caps and transaction limits that users should be aware of.
Such restrictions are necessary in order to ensure the safety of UPI users, to avoid illegal actions and to regulate the system’s load. In case you are using an instant UPI app for frequent or high-value transfers, knowing these limits will help you to avoid any possible transaction failures and will make the process easier.
What Are UPI Transaction Limits?
- UPI limits: Mean the maximum that you can send in one go and per day over a UPI-enabled platform of any type. These caps are decided by the National Payments Corporation of India (NPCI). In addition, individual banks or apps can implement further limitations.
- Per Transaction Limit: In most cases, the upper cap for a single UPI transaction is ₹1,00,000. Besides, this may differ between banks or usage cases. For instance, credit card bill payments, loans repayments, or merchant payments might be allotted different limits.
- Daily Transfer Cap: In general, UPI customers can distribute up to ₹1,00,000 within 24 hours. But remember, this can be done in more than one transaction. The number of daily transactions is usually limited to 10–20, again based on your bank or the instant UPI app you’re using.
- Limits for New Users or Accounts: Banks may place more severe restrictions on recently registered UPI users. As a security measure, the transfer limit for the first 24 to 72 hours might be as low as ₹5,000 or ₹10,000.
Are Limits the Same Across All Apps and Banks?
Not necessarily. The actual limits may differ based on a variety of factors even though NPCI sets broad guidelines.
- The bank linked to your UPI ID
- Your account type and verification status
- The platform or instant UPI app being used
- Merchant vs. peer-to-peer transactions
For example, some apps may let verified users transfer larger amounts, while others might restrict high-value payments for unverified or new accounts.
Special UPI Use Cases with Modified Limits
- UPI for IPOs and Credit Card Bill Payments: One of the exceptions allowed by UPI is when a customer uses UPI to apply for an IPO or a credit card bill payment. The transaction limit is generally thrice the usual limit — as per SEBI it can be up to ₹5,00,000. Similarly, billers, such as credit card companies, would be more lenient in setting a cap above ₹1,00,000 if the bank concurs with their request.
- UPI AutoPay: It should be noted, however, that UPI AutoPay is well-known in this field for its automatic, regular payments (subscriptions, insurance, etc.). Typically, these relinquished technical rights are capped at ₹15,000/m for each TAC/TG. These agreed flows might mean that for each setup, the approval has to be given again.
How to Check Your UPI Limit
Probably the simplest method is that you launch your instant UPI app and check the bank account section. Most apps not only allow you to see your daily and usage limit per transaction but also tell you how much you have used so far.
You could also visit your bank’s website or their customer service to inquire about their UPI policy.
In case you remain unaware of the UPI policy, carrying this information can save you from any misunderstanding and wrong transactions.
What Happens If You Exceed the Limit?
The transaction will be rejected immediately if you go over the allowed limit while transferring money. Usually, a message indicating the problem will be sent to you, for example, “limit exceeded” or “transaction not permitted.” The money will remain in your account, but you still have to either wait for the next day or reduce the amount to be transferred.
However, in certain applications, if you fail to follow the rules, such as overstepping the limit, the number of times you fail may be considered your daily transaction count, and so, you should not repeat the action.
Tips to Stay Within Limits
- Split larger transfers across two or more days
- Verify your bank account to unlock higher limits
- Use internet banking or NEFT/RTGS for very high-value payments
- Choose an instant UPI app that displays real-time balance and limits
Conclusion
UPI makes a payment very easy, but knowing the restrictions put by the banks and the NPCI will ensure that there will be no interruptions. Such limits enable transaction security and also prevent overloads during busy hours. You can now easily send money to your loved ones or even pay utilities with an instant UPI app, just keep in mind your UPI transaction and daily transfer limits, and this knowledge can become a financial planning tool and it will also help you avoid unnecessary waiting times.