Good news for all those who do online transactions! Do you know that now you can increase your daily limit of UPI payments to more than Rs 1 lakh? Yes, if you make big transactions every day, then this news is very useful for you. Know when and how to increase your UPI limit, and also the necessary precautions that come with it.
What is the UPI limit
Unified Payments Interface (UPI) has completely changed the way money is transferred in India. It is fast, secure, and extremely convenient. But, do you know how much can be sent in a day through UPI? This is called the UPI limit. In most banks, this limit is fixed at ₹ 1 lakh. However, the rules of different banks and payment apps may be slightly different. In some places, you also get the facility to increase this limit.
If you are a small businessman or you have to regularly make transactions of more than Rs 1 lakh, then this limit often falls short. In such a situation, increasing your UPI limit can be very beneficial according to your needs.
How to increase your UPI limit
Increasing the UPI limit depends on the bank and the payment app you are using. Here are the methods for some major apps:
Google Pay (GPay):-
To increase the limit, you have to add a bank account that supports higher payment limits. Also, make sure that the KYC (Know Your Customer) process of your bank account is fully completed. Increasing the limit without KYC will not be possible.
PhonePe:-
You can request to increase the limit by going to the Support section directly through the app. Remember, only the limit of the bank account linked to your PhonePe matters, so you can also increase the limit by contacting the bank or updating your linked account.
Paytm:-
On Paytm, verified users can apply to increase their UPI limit by clicking on the ‘Manage Bank Accounts’ option. Here, too, it is mandatory to complete your KYC.
BHIM App:-
The BHIM app directly follows the rules of NPCI (National Payments Corporation of India). Your bank’s policies are also important here. You may also have to confirm with your bank if they allow higher limits through BHIM.
Terms and precautions for increasing the UPI limit
Increasing the UPI limit is not only a convenience but also comes with some conditions and risks. To increase the UPI limit, you have to follow some conditions:
Some banks review your previous transaction history.
The regular activity and health of your account are also looked at.
Your KYC status should be absolutely updated and verified.
In some cases, banks also look at how long your account has been active.
If your account status is good and you are a reliable customer, the chances of getting a limit increase are higher.
Why shouldn’t everyone increase their limit
Increasing your limit is beneficial, but it also comes with increased risks. If your phone gets stolen or you fall prey to fraud, your huge savings could be at risk. UPI payments are instant, and once made, payments cannot be withdrawn. So, increase your limit only if you need it, like if you have a small business or you make a lot of large transactions. Increasing your limit unnecessarily can be risky for you.
What to do if the bank does not increase your limit
If your current bank is not increasing your UPI limit, you have an option. You can open an account in a new bank that offers higher UPI limits. Some private and digital banks, especially for merchants, offer limits of ₹5 lakh or even more. This can be a great option, especially for small and medium-sized businesses.