Unified Payments Interface (UPI) has transformed how payments are made in India, offering a fast, convenient, and secure option for everyday transactions like grocery shopping or bill payments. Beyond standard UPI payments, options like UPI Lite and UPI 123Pay cater to specific user needs, enhancing the payment experience.
If you’re a regular UPI user, it’s important to know the latest transaction limits for different UPI payment types. ET Wealth Online breaks down the daily limits for UPI, UPI Lite, and UPI 123Pay transactions.
UPI Transaction Limit Per Transaction: Latest Update
The standard UPI transaction limit for peer-to-peer payments is set at Rs 1 lakh. However, this can vary depending on the bank, which has the flexibility to set limits ranging from Rs 5,000 to Rs 1 lakh or more. The transaction limits can also differ depending on the UPI app you use, and banks may impose individual daily limits based on various criteria.
For certain transaction types, like capital market transactions, insurance, collections, and foreign inward remittances, the daily limit is higher at Rs 2 lakh. For tax payments, hospital and education fees, IPOs, and RBI retail direct schemes, individuals can now make UPI payments of up to Rs 5 lakh per transaction.
It’s clear that UPI limits vary based on transaction type. It’s essential to check with your bank and UPI app for their specific limits.
Also Read- Big Changes in RTGS and NEFT Payments: How RBI’s Move Will Help You!
UPI Lite Payment Limits Increased: Key Information
UPI Lite is a wallet service for small-value transactions that doesn’t require a UPI PIN. Funds are added from your bank account to your UPI Lite wallet, allowing you to make payments using the pre-loaded balance. UPI Lite is supported by popular apps such as Google Pay, PhonePe, Paytm, and BHIM.
Previously, the maximum UPI Lite transaction limit was Rs 500, and the wallet balance limit was Rs 2,000. To encourage wider use of UPI Lite, the Reserve Bank of India (RBI) has raised the transaction limit to Rs 1,000 and the wallet balance limit to Rs 5,000.
UPI 123Pay Transaction Limit Increased
The RBI has also increased the transaction limit for UPI 123Pay from Rs 5,000 to Rs 10,000. UPI 123Pay is designed for feature phone users who don’t have access to smartphones, enabling them to make UPI payments without needing an internet connection.
To use UPI 123Pay, users create a UPI ID and set a 4-6 digit PIN. Transactions are completed by dialing a specific number, following voice instructions, and entering the UPI PIN to confirm payments.
In summary, UPI transaction limits vary based on the bank, app, and type of payment. Stay informed by checking with your bank and UPI app for up-to-date limits on different transactions.