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