RBI raises UPI transaction limits: what you need to know | Fusion - WeRIndia

The Reserve Bank of India (RBI) has recently increased the Unified Payments Interface (UPI) transaction limit for tax payments from ₹1 lakh to ₹5 lakh per transaction. This new rule provides greater flexibility for taxpayers using UPI for their transactions.

While the standard UPI transaction limit remains ₹1 lakh per day, specific categories like capital markets, collections, insurance, and foreign inward remittances have a higher limit of ₹2 lakh per transaction.

For Initial Public Offerings and the Retail Direct Scheme, the maximum transaction limit is now ₹5 lakh. UPI’s popularity has led to varied limits across banks, depending on the type of transaction.

For instance, merchant transactions in capital markets, insurance, and foreign inward remittances can go up to ₹2 lakh per transaction.

However, for peer-to-peer (P2P) transactions, the maximum limit is still ₹1 lakh, though this may vary by bank.

Bank-Specific UPI Limits:

• State Bank of India (SBI): Sets a daily transaction limit of ₹1 lakh for UPI.
• Bank of Baroda: Permits up to ₹1 lakh per day, with a restriction of 20 transactions daily.
• Union Bank of India: Caps UPI transfers at ₹1 lakh per transaction.
• Canara Bank: Limits P2P transactions to ₹1 lakh within 24 hours, with a maximum of 20 transactions.
• Punjab National Bank (PNB): The upper limit per UPI transaction is ₹1 lakh.
• HDFC Bank: Allows up to ₹1 lakh per P2P transaction, with a cap of 20 transactions per day.
• ICICI Bank: Enforces a ₹1 lakh limit per transaction, with a cumulative daily limit of ₹1 lakh. A maximum of 10 transactions can be made within 24 hours.
• Axis Bank: The overall 24-hour transaction limit for P2P transfers is ₹1 lakh.
• Yes Bank: Customers can transfer up to ₹1 lakh daily, with the NPCI’s transaction limit also set at ₹1 lakh.
• Kotak Mahindra Bank: Allows a daily transfer limit of ₹1 lakh via UPI, with a maximum of 10 transactions. QR code payments are capped at ₹2,000 per transaction.
• DCB Bank: The daily UPI transfer limit is ₹1 lakh.
• IndusInd Bank: Sets a general UPI transaction limit of ₹1 lakh per day, with higher limits for specific categories.

This increase in UPI transaction limits is a significant step towards enhancing digital payment options, making it easier for individuals and businesses to manage their financial transactions securely and efficiently.

Image Credit: UPI, CC0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:UPI_LOGO.svg