Upi Transaction Limits At Leading Banks Updated For 2020

If you're a regular online shopper, or if you pay your utility bills online, then you would have come across UPI payments. You might even be a regular user. But, do you know all about UPI? Have you ever wondered if there are any transaction limits for UPI, just like the maximum amount you can withdraw at an ATM daily? Well, this guide will answer all your queries. 

Here, we discuss what UPI is, its features, and the daily transaction limits levied on UPI transactions at leading banks. First things first, 

Additional Reading: How much can you transfer through UPI?

What is UPI? 

UPI (Unified Payments Interface) is a digital payment system developed by the NPCI (National Payments Corporation of India) and regulated by the RBI (Reserve Bank of India). In simple terms, UPI facilitates instant fund transfer between two bank accounts digitally. It’s a unifying platform that brings different banks under a single portal. 

UPI works on the IMPS (Immediate Payment Service) technology and helps transfer funds from one bank to another in real-time. Using UPI, you can transfer/receive funds instantly without the need to provide the bank details. To complete the transaction, all you have to do is provide the unique UPI ID and UPI PIN.

Key Features of UPI 

• Bank details need to be provided only once – at the time of registering for the UPI ID. You just have to enter the VPA (Virtual Payment Address) or UPI ID for subsequent transactions.
• You can transfer up to Rs. 1 lakh in a single UPI transaction. 
• You can schedule transactions, adding to the convenience of payments. 
• UPI transactions are linked with Aadhaar. 
• You can transfer funds to anyone at any time – it’s available 24 * 7. 
• UPI transactions are highly secure. 
• Funds can be transferred with just a single click. 

Transaction Limits on UPI Transfers 

Upper Limit per Transaction 

The NPCI decides the upper transaction limit for each UPI transfer. As per current guidelines, this limit is set at Rs. 1 lakh. This means the maximum amount you can transfer in a single UPI transaction is Rs. 1 lakh. This limit is enforced as UPI is based on IMPS, which has a similar limit. 

Note that the NPCI issued a circular in March 2020, stating that the UPI transaction limits at verified merchant stores have been increased for the FY 2020-21. Now, you can transfer up to Rs. 2 lakhs in a single UPI transaction. However, note that this limit increase does not apply to peer-to-peer fund transfers.

The upper limit for a UPI transaction varies from bank to bank. It can be anywhere from Rs. 10,000 to Rs. 1 lakh, depending on your banking provider. For example, the maximum amount you can transfer using the BHIM UPI in a single transaction is Rs. 10,000, and you can only transfer a maximum of Rs. 20,000 in a 24-hour window.

On the other hand, the UPI transaction limit at SBI is Rs. 1 lakh per day, and for Bank of Baroda, the UPI transaction limit per day is Rs. 50,000.

Maximum Number of UPI Transactions Allowed in a Day 

Generally, the maximum number of UPI transactions carried by an individual per day is usually limited to 20. However, this upper limit varies from bank to bank. The majority of banks have removed this upper limit, making it possible for users to carry more than 20 UPI transactions per day.

Some banks, on the other hand, have a maximum transaction limit per week/month. For example, at IDFC Bank, the UPI transaction limit per month is Rs. 30 lakhs. Other major banks like SBI, Canara Bank, Axis Bank, ICICI Bank and several others have not imposed any monthly UPI transaction limits.

UPI Transaction Limits at Leading Banks for 2020

Bottom Line

UPI has made digital payments highly convenient and hassle-free. You don't have to remember the bank account number of the recipient. All you have to do is enter the virtual payment address or the mobile number of the recipient. Secure and highly-safe, it's no wonder UPI has emerged as one of the popular ways to send and receive cash online. Be aware of the transaction limits and instantly send money to your friends and family via UPI payment gateways.