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UPI Transaction Limit: Nowadays people use UPI for everything from small payments to large transactions. But it often happens that you are not able to transfer as much money as your friend. Have you ever wondered why everyone has different transaction limits despite using UPI? There is not just one but many reasons behind this. Let us understand this confusion in simple words.
What is the main rule of UPI limit?
First of all, it is important to know that the National Payments Corporation of India (NPCI), the body that manages the UPI system in India, has set a maximum limit of Rs 1 lakh at a time. However, this is an upper limit. This does not mean that everyone can send Rs 1 lakh. Banks and apps can increase or decrease this limit as per their policy.
Why is there a difference between your limits and someone else’s limits?
The following may be the reason behind your UPI limit being lower or higher than other users:
1. Bank’s own policy
Every bank has different risk management policies. To protect customers from online fraud and scams, some banks deliberately keep their transaction limits low. For example, SBI allows its customers a daily transaction limit of up to Rs 1,00,000, while a small or co-operative bank may keep this limit as low as Rs 25,000.
2. Difference between new and old users
If you are new to UPI, your limit may be limited to Rs 5,000 for the first 24 hours due to security reasons. This rule is to ensure that your account is not incorrectly activated by a fraudster. After completion of 24 hours, your limit will automatically increase. This rule does not apply to existing users.
3. Transaction Type
This limit also depends on to whom you are sending the money. Typically, the limit for paying a merchant or merchant may be higher than the limit for sending money from one person to another. The limits for receiving and sending money are higher for users with business UPI accounts.
4. More discounts for special categories
NPCI has relaxed the UPI limits for some sectors. If you are paying hospital bills or fees of any educational institution, you can transact up to Rs 5,00,000 in a single transaction.
5. Which app do you use?
Apps like Google Pay, PhonePe and Paytm may also set their own transaction limits, which may be lower than your bank’s limit. For example, your bank may have a limit of Rs 1,00,000, but a particular app may only allow you to make 10 transactions a day or send only Rs 50,000 in total.
In short, your UPI limit depends not on just one factor but on multiple aspects like NPCI, your bank, the apps you are using and your account history. So, if your limit is lower than your friend’s limit, there is nothing to worry about as this is a normal process.
