UPI transactions rose to 131 billion in FY2023-24 from around 83 billion in FY2022-23, according to data from the National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI). According to NPCI, the Unified Payments Interface (UPI) is today the most preferred mode of small transactions, from grocery and restaurant bills to phone, gas, and electricity bills. However, RBI has set the daily transaction limit to a maximum of Rs 1 lakh.

Also Read: Things To Keep In Mind For Elderly Travellers Taking A Road Trip

Can You Increase The UPI Transaction Limit?

As per RBI rules, UPI daily transactions cannot exceed Rs 1 lakh. Also, certain banks offering UPI services, such as the State Bank of India (SBI), limit the first transaction via their apps to Rs 5,000 in the first 24 hours. The same limit also applies when a customer resets the PIN. After that, one can transact up to Rs 1 lakh and a maximum of 10 transactions per day.

Bank of Baroda (BoB) applies the same rule. After 24 hours of the first transaction, customers can conduct peer-to-peer (P2P) and peer-to-merchant (P2M) transactions up to Rs 1 lakh per day. However, the limit for a current account used by small businesses may differ from a savings account. The HDFC Bank’s website states, “Banks may set higher transaction limits for current accounts to accommodate higher business transaction volume.” But it depends on bank to bank.

As per NPCI, the daily transaction limit for a current account can be between Rs 25,000 and Rs 1 lakh. The limit for the number of daily transactions could also vary. For instance, HDFC allows 20 transactions per day from a current account, unlike SBI, which allows up to 10 transactions.

However, there are exceptions:

Higher Limit for Certain Transactions

In December 2023, RBI increased the daily limit for individuals from Rs 1 lakh to Rs 5 lakh if payments are made to hospitals and educational institutions. Additionally, banks allow up to Rs 2 lakh daily for capital market transactions, such as purchasing mutual funds, paying credit card bills, and loan repayments. Banks also allow transactions up to Rs 5 lakh per day for investments in initial public offerings (IPOs), as per the HDFC website.

Also Read: 5 Steps To Live Longer Like Amitabh Bachchan Showed In The Movie “102 Not Out”

Nevertheless, an individual must take prior approval from the bank to carry out such transactions. According to the RBI’s FY2023-24 annual report, the central bank plans to expand UPI transactions to 20 countries between 2024 and 2029, in addition to efforts to boost its usage.