How to Increase Your UPI Transaction Limit, Know Reason and Process

UPI Transaction Limit: India is rapidly moving towards a cashless economy, and UPI has become a crucial medium in this transition. People are using UPI extensively for everyday needs, such as rent payments, online shopping, ticket bookings, medical bills, and school fees. Its high speed, ease of use, and instant transaction confirmations have made it a trusted tool for everyone, from ordinary people to businesses.

The UPI system is operated by the National Payments Corporation of India, which manages India’s real-time payment network to promote digital payments in the country.

What is the UPI daily limit?

There is a fixed daily limit on UPI transactions. Generally, most banks allow up to approximately ₹100,000 per day for UPI transactions. This limit resets every 24 hours.

It’s important to understand that the UPI limit isn’t set solely by the app. This limit is determined at three levels, including NPCI regulations, the bank’s own security policies, and controls implemented within the app. Therefore, different users may receive different limits.

When can a higher UPI limit be available?

UPI limits may be higher than normal for certain payment categories. For example, IPO investments, tax payments, hospital expenses, education fees, and government payments, limits can sometimes range from ₹200,000 to ₹500,000.

However, this feature is only available if the respective bank supports higher limits for that category. Each bank’s policy may vary.

When can the UPI limit be reduced?

When a user connects a new bank account to UPI or links a new mobile number, the bank may initially set a lower limit for security reasons. This can also happen when changing phones or activating UPI for the first time.

Transaction limits may also be affected if KYC is incomplete. It’s also important to note that the UPI limit is linked to the bank account, not the app.

Many people today use the same bank account for different apps, such as Google Pay, PhonePe, and Paytm, but this doesn’t increase the total limit.

How to Increase UPI Limit

If a user needs a higher limit, they should first contact their bank and inquire about the current limit. If KYC is incomplete, it’s important to complete it immediately.

In some cases, the bank may activate a separate limit for specific categories of transactions. If the limit isn’t increased, it’s better to make large payments on different days, use a different bank account, or use alternatives like net banking and RTGS.

Caution is Important in Digital Payments

UPI is extremely convenient, but proper planning is always essential for large transactions. Attempting to make a payment without prior knowledge can result in a failed transaction. Therefore, it’s important to always keep up-to-date on bank regulations, security requirements, and KYC status.