UPI Transaction Limit

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Find out the maximum UPI transaction limits and the permitted transactions per day in this article.

Key Takeaways

• UPI allows instant money transfers from one account to another using a smartphone.
• It is a freely available service, and you just need to download the free UPI app.
• You can transfer up to INR 1 lakh per UPI transaction and carry out up to 20 UPI transactions per day.
• You may link multiple bank accounts to the same UPI ID.
• UPI allows transactions 24x7.

UPI (Unified Payments Interface) is a payment system developed by the National Payments Corporation of India (NPCI). UPI allows instant transfer of money from one bank account to another. You only need an internet-enabled smartphone to send and/or receive money via UPI. Banks process payments with the help of unique UPI IDs of the sender and receiver of funds. You can create the UPI ID yourself after downloading the application of your bank on your smartphone.

How to Make a UPI Transaction?

To initiate a UPI transaction, you need a UPI PIN besides the UPI ID. UPI PIN is a four- or six-digit password. You will need to verify your mobile number first and link your bank account to the UPI facility. Here are the steps for verifying the mobile number and linking your bank account:

1. Download your preferred third party or bank UPI app on your mobile phone.
2. Verify your mobile number. The mobile number should be the same as the one that is registered with the bank. The app verifies the mobile number automatically.
3. Create a 4-digit password.
4. Tap on the ‘add/manage bank account’ option on your UPI app to link your bank account to UPI and select your bank.
5. Creating your UPI ID, a virtual payment address for facilitating transactions, and a 4- or 6-digit UPI PIN (mPIN) by providing the expiry date and last six digits of your debit card.
6. You are now ready to use the UPI facility.

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UPI Transactions – Important Facts

• You may link multiple bank accounts to the same UPI ID.
• You cannot reverse a payment once the UPI platform processes it.
• Money is refunded to the source account if any UPI transaction fails.
• You can download multiple UPI apps on the same mobile phone and link the same savings account to different UPI apps
• You can initiate UPI transactions 24x7 at no cost at all.

What is the Maximum UPI Transaction Limit?

The NPCI allows up to 20 UPI transactions per day per user. NPCI has set a UPI transaction limit of INR 1 lakh for each transaction. The UPI transaction limit per day applies to fund transfers only. Utility bill payments and merchant transactions are beyond the cap.

You can transfer a maximum of only INR 5,000 in the very first fund transfer using the UPI app. The cap will remain in force for the next 24 hours after the first transaction.

For bank-enabled UPI apps, the actual UPI transaction limit may vary from one bank to another. Some banks allow two UPI transactions per day with a maximum limit of INR 25,000 per transaction, while others allow 10 UPI transactions per day and a maximum UPI transaction limit of INR 1 lakh per transaction.

Conclusion

UPI transactions have simplified the fund transfer process. Anyone with access to a smartphone and a stable internet connection can use UPI. It is an excellent way to send and receive funds, especially in an emergency or when you do not have sufficient cash or bank cards on your person.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.