Unified Payments Interface popularly known as UPI has gained massive popularity in India and emerged as one of the most used transaction methods ever since it has been in existence. UPI transactions not only offer great ease but allow you do transactions in seconds.
The ease in its accessibility and high speed of transferring money made it highly popular among citizens. If you have a smartphone and a reliable internet connection, you are all set to use the UPI method of making transactions.
1. What is UPI?
UPI is a fast payment method created by National Payments Corporation of India or NPCI. NPCL is controlled by RBI. "UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties' bank accounts," as per the NPCL website, developer of the system. The website says, "It is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the "Peer to Peer" collect request which can be scheduled and paid as per requirement and convenience."
2. Transaction limits
RBI and NPCL have capped the daily transaction limit to Rs 2 lakh per user. Meanwhile, various banks such as SBI, PNB, ICICI Bank have imposed different transaction limits. Find below:
3. UPI Transaction Limit Set By Leading Banks
SBI: The leading public lender has imposed a UPI transaction limit of Rs 1 lakh per user. Meanwhile, the daily UPI limit is fixed at Rs 1 lakh.
HDFC Bank: The largest private sector lender has also fixed its daily transaction limit at Rs 1 lakh per user and daily limit is fixed at Rs 1 lakh. If you happen to be a new user, the transaction limit for the first 24 hours will remain Rs 5000.
Axis Bank: The bank has set the daily transaction limit at Rs 1 lakh per user and the daily UPI limit is fixed at Rs 1 lakh per user.
PNB: The leading public sector bank has set the UPI transaction limit at Rs 25,000, lesser than other banks. The daily UPI Limit remains at Rs 50,000 per user.
Bank of India: Its daily UPI transaction limit is set at Rs 1 lakh per user while the daily UPI Limit is fixed at Rs 1 lakh.
ICICI Bank: The UI transaction limit is Rs 10,000 and the daily UPI limit is Rs 10,000 per user. If you are a Google Pay user, the bank has fixed both the limits at Rs 25,000 per user.