21 May 2024

UPI Transaction Limits for Different User Tiers: Exploring Variations for Regular Users vs. High-Value Transactions

In recent years, especially after the COVID-19 outbreak, the Unified Payments Interface (UPI) has emerged as a game-changer in Indiaโ€™s digital payments sphere, completely revolutionizing the way people transact money. With its seamless, smooth, secure transactions as well as upi payment limit, has undoubtedly garnered immense popularity among users across various segments.ย 

However, understanding the transaction limits for different types of users is quite important for both regular users and those engaged in high-value transactions. Letโ€™s dive deep into the variations and implications of these limits.ย 

Understanding UPI Payment and its advantages

As the term suggests, Unified Payments Interface (UPI) is a real-time payment system in our country that offers instant money transfer between bank accounts via smartphones with the help of an application. Due to its efficiency, it has gained immense popularity for obvious reasons.ย 

For those who are not aware, it was launched by the National Payments Corporation of India (NPCI) in 2016, UPI facilitates real-time inter-bank transactions through a single interface. Moreover, one can easily link multiple bank accounts to a single UPI ID, making it convenient to transfer funds instantly using smartphones.ย 

During the pandemic, more and more online transactions were pushed, due to which people started using cash less.ย 

 

  • Convenience

When it comes to transactions, UPI payments provide unparalleled convenience and speed. This totally eliminates the overall time-consuming process of counting and handling cash.

(Note: Applications also offer the feature of UPI pay later.)

  • Completely Contactless

Nowadays, hygiene and safety are the two top most priorities of individuals. UPI allows users to make payments without any physical contact, reducing the risk of spreading germs.ย 

  • Security

There is no need to worry while initiating transactions via UPI, as they have strong and solid security measures. PINs, two-factor authentication, etc, ensure the integrity and confidentiality of transactions.ย 

Understanding Transaction Limits

When it comes to the limits, as per the latest guidelines, the UPI transaction limit per day is Rs 1 lakh as per NPCI. However, the limit is Rs 5 lakh for payments to educational institutions as well as healthcare. Furthermore, the maximum daily transfer limit can change from bank to bank between Rs 25,000 to Rs 1 lakh.ย 

How many upi payments can be done in a day?

As last checked via some reports, NPCI has also restricted the number of transactions users can make per day. One can conduct up to 20 UPI transactions within 24 hours and they have to wait for 24 hours before initiating further transactions once this limit has been reached.ย 

Which is the best UPI application?ย 

Bajaj Finserv! Without any doubt, you just go for this upi payment application. With just a single tap, you can easily do UPI transactions and apart from UPI, it has a lot to offer. This is my go-to finance application for almost everything. Highly recommended!

Conclusion

All in all, these transaction limits completely vary depending on the user tier and purpose of transactions. While regular users are subject to a daily limit of Rs 1 lakh, KYC-compliant users as well as businesses enjoy higher limits for obvious reasons, catering to their specific needs.ย 

Remember that UPI paves the way for a cashless economy, driving financial inclusion and empowerment across the nation.ย