NPCI (National Payments Corporation of India) introduced UPI (Unified Payments Interface) to streamline payment convenience for consumers. It allows users to make their payments to various merchants through a single application. But, with the ease of payments for users, there was a significant security risk as well.
Therefore, to find a solution to the potential problems. RBI introduced a transaction limit upon UPI. It was important because UPI doesn’t use any debit/credit card or net banking credentials for processing transactions. Therefore, to ensure that the funds are being transferred with the consent of the account holder, these limits are of great help.
But, at one point, this limit bothered the users, as they were restricted to a point where their digital payment convenience was hindered. Ultimately, they had to turn up to other payment solutions such as debit/credit cards or net banking. Therefore, the urge to increase the UPI transaction limit was proposed.
So, if you are among the users who want to know how to increase UPI transaction limit, this article is for you!
The Need for Emphasising the UPI Limit
It is quite important for everyone to know that the number of fraudulent cases through UPI has increased stupendously in the past few years. But at the same time, the secured measures of imposing transaction limits have helped drop the fraud-to-sales ratio.
To create a balance and ensure no UPI frauds take place among users, the security infrastructure needs to be enhanced, even at the cost of people’s convenience of making easy payments. With the limitations in hand, the fraudulent transactions won’t compromise all your funds in a day and will give you enough time to report the incident.
These limits are also important in scenarios where new use cases are being implemented with UPI as their facilitator. As of today, UPI also enables non-resident bank account holders to register over UPI with international numbers; the need for creating a security infrastructure and ensuring smooth operation is quite crucial.
The UPI Transaction Limits Update Of 2022
Back in 2022, UPI transaction limits were updated, and that helped a lot of users revive their ease of making necessary payments. As of today, the UPI limits are increased on all fronts, making it a standard preference for all users. The updated limits are as follows:
1. For IPO and RDS, the limit is Rs. 5,00,000
2. P2P or P2P Merchant, the limit is Rs. 2000
3. Peer to Merchant (Non-Verified), the limit is Rs. 2000
4. For P2P/P2PM Payments, the limit is Rs. 1,00,000
5. Peer to Merchant, the limit is Rs. 1,00,000
6. Peer to Merchant (Verified Categories), the limit is Rs. 2,00,000
The limitation on the UPI transactions is not just infused in terms of the amount being transferred but also with the number of transactions being made in a day.
As of today, every bank linked to the UPI network enables their users to make a limited payment between Rs. 10,000 to Rs. 1,00,000 per day. For example, the State Bank of India allows its customers to transact up to Rs. 1,00,000 daily through UPI, whereas the Bank of Baroda permits the transaction of just Rs. 50,000.
How to Increase the UPI Transaction Limit?
As stated earlier, the UPI transaction limit is a secure initiative but isn’t in favour of a lot of people. When you are restricted to spending only a limited amount in a day through UPI, some financial activities might get halted.
Suppose you have to make an urgent business payment from your account, and you did it through UPI. In that case, you cannot head out to any merchant or store to use UPI as a payment mode throughout the day, as you have exhausted the daily limit. Thus, it seems frustrating at times.
Once the 24-hour cycle completes, the daily transaction limit will be restored, and you can then use your UPI apps to process the payments. But the limitations continue to persist on a daily basis! But the fact is that you cannot increase your UPI transaction limit at any cost. There is no scope for you to make adjustments to these limitations, irrespective of the circumstances.
The highest amount that you can transact in a day through UPI is set by the government, with security guidelines in mind. Therefore, no user can influence these restrictions. As a result, NPCI has demanded every UPI user abide by this rule for the security of their own funds.
What Are the Daily, Weekly, and Monthly UPI Transaction Limits?
Now that you know the hard truth about not being able to increase your UPI limits, it is important you get an idea of segregating your payment habits to stay within them. Therefore, here is a brief insight into daily, weekly, and monthly UPI transaction limits:
1. Per Day
Almost all banks have set up their UPI transaction limits to Rs. 1,00,000 per day. But the decision stays with the bank to keep it between Rs. 10,000 and the maximum permitted limit.
2. Per Week
There’s a weekly limit for UPI transactions as well, and it is being established by many banks today. The per-week limit for UPI transactions ranges somewhere between Rs. 4,00,000 and Rs. 7,00,000. But this varies from bank to bank!
For instance, the State Bank of India doesn’t have any weekly UPI transaction limits, but IDFC has it with Rs. 7,00,000.
3. Per Month
Some of the reputed commercial banks have set up monthly UPI transaction limits for their users. Apart from that, some public sector banks have also adopted this rule! As per the insights, the monthly UPI transaction limit ranges between Rs. 10,00,000 and Rs. 30,00,000.
For instance, IDFC has set its high-end per-month transaction limit as Rs. 30,00,000.
With digitalisation, the people of India are now booming with the culture of online payments. But with UPI, people found it even more convenient to process payments to merchants, peers, and businesses. There isn’t any need to enter the recipient’s account number or other financial credentials.
Instead, you just need to enter the mobile number or UPI ID, and the payment can be transferred directly to his/her bank account. How convenient is that, right? But with such convenience comes greater risks as well. Therefore, to avoid any financial loss due to fraudulent access to the UPI app or unauthorised payments, there are UPI limitations imposed upon the facility.
Now, if you want to learn how to increase UPI transaction limit, believe that this limitation is for your own financial safety. You have alternate payment options to authorise your transactions beyond the UPI limits. For instance, you can use debit/credit card or net banking for the same.
1. What is the UPI limit in a day?
The UPI transaction limit in a day is Rs. 1,00,000, as set by most banks. In most cases, this limit is enough to make smaller payouts or deal with day-to-day expenses. Big purchases should be made through other modes of payment.
2. Is there any way to increase the given UPI limit?
If you want to know how to increase UPI transaction limit, then the answer is you cannot! No customer has the privilege to increase the UPI limit or run adjustments on its policies. Everyone should follow the standardisation of the Government.
3. Can we transfer money internationally using UPI?
No, UPI transactions aren’t permitted to international boundaries yet. But soon, there might be a provision for you to avail of the same.