Unified Payments Interface Transaction Limit UPI

The NPCI has set transaction limits for UPI transactions. Currently, the transaction limit is INR 1Lakh, Which means That the maximum amount which can be transferred is capped at rupees 1 lakh. According to an RBI circular, the limit was raised to 2 lakh verified merchants.

Also, the number of transactions performed during a day is capped at 20. This limit also varies across Banks. It is also pertinent to note that UTI transaction limits can be changed from time to time. However, most well-established banks have done away with the limits.

Specific UPI transaction Limits

Under the NPCI Limit, banks are free to fix their limits. They can do this to protect their customers. Following this, some banks have lowered the UPI transaction cap for their customers. The limits for transactions, therefore, vary across several banks from INR 10,000 to INR 1 lakh.

For instance, the maximum amount that can be transferred in a day using any app is INR 1 Lakh. Similarly, banks in India have defined their own daily and transaction limits. You will not be able to perform any transactions in case you have exceeded your transaction limit for the day.

1) The daily transfer is limited to INR 1Lakh across all UPI apps.

2) Limit of 10 transactions for money transfer in a day across all UPI apps.

3) Overall daily limit of 20 transactions

4) Limit requesting up to INR 2000 from others.

The RBI has proposed increasing the transaction limit of payments made through the Unified Payments Interface to INR 5 Lakhs for the Retail Direct Scheme and Initial Public offering applications.

The RBI recently, on November 12, launched RBI Retail Scheme to enable retail investors to invest in primary issuance and secondary market transactions in Government securities.

What is UPI Lite?

The National Payments Corporation of India is planning to introduce another payment system for UPI transactions offline. This is called UPI lite- On Device Wallet

The NPCI has not revealed any specific dates for the launch of UPI Lite. It has been stated that UPI Lite will be launched initially as a pilot project with multiple banks and service providers, and after comfort is achieved, a full-scale launch with compliance timelines for issuers and app providers shall be declared.

With UPI Lite, you will have an option to scan any QR code to make payments without using any internet. As per the NPCI, 50% of the total UPI transactions have a value up to INR 200, which is why the maximum limit for offline transactions shall be INR 200.

Also, the total limit of holding the UPI Lite balance shall be INR 2000. Adding funds in UPI Lite shall only be allowed online through Additional Factor Authentication (AFA) or using the AutoPay feature in UPI.

Enabling UPI on feature phones has manifold benefits as it will enhance digital penetration of the financial system and help a large number of people without access to smartphones or internet access for digital transactions. There is also a need to simplify the process flow, especially for low-value transactions, to reduce transaction failures due to connectivity issues. This would in turn help in much wider adoption of UPI as the alternative to Cash

How to make UPI Payments using Credit, Debit Cards?

The process of payment involves scanning a QR code and selecting the added debit or credit card as a payment method. Once initiated, an OTP is sent to your registered mobile number to complete the transaction.

Adding Credit/ Debit cards on Gpay

Step 1: The application should be opened and the profile picture is to be selected.

Step 3: You will be required to enter the card details including the card number, expiry date, CVV, the name of the cardholder and the billing address.

Step 4: Lastly you will need to accept the terms and conditions of the issuer and click on ‘Activate’ to start paying in stores and to merchants.

You will also be required to verify your card using a Time Password (OTP) for additional authentication. Once verified, the card can be used for transactions.

UPI Transaction Limit for ATM withdrawals

This facility facilitates users to withdraw cash without carrying debit or credit cards. It will serve as a highly convenient and hassle-free experience. The only requirement would be an ATM machine with UPI service, UPI based payment apps like GPay, PhonePe, Amazon Pay or PayTM with an active internet connection. The overall limit for such transactions would be INR 5000.

Steps to withdraw money from an ATM using UPI based payment methods:

• Visit any ATM Machine and you can select the withdraw option
• Select the UPI option on the screen
• Scan, the QR code which appears on the screen
• Next, open your preferred UPI app on your device and use the QR code scanner.
• Lastly, enter the amount to withdraw up to a limit of INR 5000.

Do you need to register a beneficiary before fund transfer through UPI?

Registering a beneficiary to transfer money through UPI is not necessary. As the amount is transferred on the basis of a Virtual Payment Address/ Aadhar Number.

What if the money is debited but the transaction fails?

UPI provides for real-time reversals for such declines and the amount would be credited back to the account of the transferer immediately. If such reversal does not happen instantly, the customer needs to contact their bank. Also, in case of failures, money gets refunded after a while.

The upper limit per UPI transaction for approved merchants is up to INR 2 Lakhs.

UPI is the single largest retail payment system in the country in terms of volume of transactions with 14 crore transactions being processed per day in October 2021. One of the major objectives of UPI was to replace cash for low-value transactions, which seems to have been achieved as more than 50% of transactions were below INR 200. These utilize a significant level of resources and capacity which often lead to transaction failures. So, RBI has proposed a simpler process by enabling on device wallets in UPI apps to conserve resources without affecting the customer experience.

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