UPI stands for Unified Payment Interface. The National Payment Corporation of India develops this interface. The Reserve Bank of India regulates it. UPI has become an essential part of our lives. It has become one of the easiest modes of online payment in India. It enables the user to instantly transfer funds to the merchants through their mobile apps. UPI payment option gives the user flexibility, security, and easy access to funds for various online purchases or services.
Since RBI is the governing body in India for all financial transactions, so do UPI has to abide by its rules and regulations. On January 1, 2024, a new change came into effect that is about transaction or surcharge fees.
Also Read :
UPI Payments: Definition, Working, Features, Security, Success Factors, and International Acceptance Guide
As per NCPI, the transaction limit is Rs.1 lakh per day. However, if payment is to be made for educational institutions and healthcare, the limit is Rs.5 lakhs. From bank to bank, the maximum limit for daily transfer through UPI varies from Rs. 25000/- to Rs. 1 lakh. Few banks have set up their upper limit as per week or month instead of a day.
NCPI sets an upper limit for the maximum number of UPI transactions per day. As per new guidelines, per day, 20 UPI transactions are allowed; after that user has to wait for 24 hours to start the transaction. These limits may vary from bank to bank. Only 10 transitions are allowed for third-party UPI apps.
Also, a 30% volume cap has been put on all UPI apps by NCPI. This is done to ensure that UPI apps do not form a trust in the UPI market. UPI payments through a digital wallet such as Phonepe, Paytm, Sodexo voucher, Freecharge, and Amazon Pay have to pay an intercharge fee of up to 1.1% for certain merchant payments above Rs 2000. The bank charges this particular fee for the payment service. The merchant who has received the payment has to pay this. However, normal customers do not have to pay transaction charges.
Interchange fees are the fees imposed on the merchant when the customer processes aUPI transaction through their prepaid payment instrument. Understanding the concept of inter businesses and individuals to associate with using UPI transactions. Here is the list of a few categories:
Post office, telecom, utilities, agriculture, and education: 0.7%
Fuel: 0.5%
Supermarket: 0.9%
Insurance, mutual funds, and railway: 1.1%
Guidelines for UPI Transaction
As per the new guidelines by NCPI, UPI transactions through PPI have to pay the intercharge fee of up to 1.1% of the transaction amount. These charges will be imposed on the UPI transactions made through prepaid instruments like wallets, Amazon Pay, etc. Only for specific merchants like online and large merchants will be charged above Rs.2000/-. It means the charges have to be paid by the merchants, not by the customers or users.
UPI Transactions that are Exempted from Transaction Fee
All UPI transactions are not required to pay the transaction fee. Few of them are exempted from this. Individual transfers, online purchases, and transactions through wallets. Small businesses whose monthly UPI transactions are estimated to be less than or equal to Rs. 50000 are also not eligible to pay inter-charges fees. Transferring money from individual to individual or from indication to small business and also exempted. UPI transactions done between bank accounts do not entail any transaction fee.
Top Bank with their UPI Transaction Limit
The number of transactions and UPI transfer amount is set by NCPI, which is a maximum of up to 20 transactions or Rs.1,00,000/- in a day. However, various bank have their limits. Here is the list of some Indian banks with the details of their UPI day limit and transaction amount limit.:
BANK
UPI DAY LIMIT
UPI TRANSACTION AMOUNT LIMIT
SBI
Rs.1,00,000/-
Rs.1,00,000/-
ICICI
Rs.1,00,000/-
Rs.1,00,000/-
HDFC
Rs.1,00,000/-
Rs.1,00,000/-(Rs.5000/- For new customers)
AXIS BANK
Rs.1,00,000/-
Rs.1,00,000/-
PNB
Rs.50,000/-
Rs.25,000/-
BANK OF INDIA
Rs.1,00,000/-
Rs.10,000/-
IDBI BANK
Rs.1,00,000/-
Rs.1,00,000/-
Most of the banks are offering a good limit for UPI transactions. However, these limits may differ based on the type of UPI transaction. It is important to check with the branch about specific UPI transfers before making the transaction.
Points to Know as a UPI User
There are lots of benefits to UPI transactions. However, there are a few points that, as a user, we need to remember while using UPI:
Inactive UPI ID: As per NCP guidelines, the bank has to close or deactivate all the UPI IDs which is linked with dormant accounts.
Transaction limit: The transaction limit varies from bank to bank. In December, the RBI Governor announced to increase in the UPI limit from Rs.1 lakh to Rs. 5 lakh. It is applicable to healthcare and educational institutions.
Cash withdrawal via QR code: India’s first UPI-ATM is a joint project of NCPI and Hitachi Payment Services. This facilitates the user to withdraw cash by scanning the QR code.
4-hour window: RBI has proposed a 4-hour time limit for the new user who is initiating their first transaction over Rs.2000/-. It allows users to reverse the transaction or modify it within that time limit. It is an extra layer of safety and control while doing online transactions.
Conclusion
In today’s digital world, where transactions are happening within a minute through Internet banking, UPI payments have given a new way to handle digital payments. To encourage people to use more digital transactions, NCPI has introduced UPI payments. It works under the rules and regulations imposed by the RBI. UPI has made common people’s lives easier like traveling without cash or a card, payments made within minutes, and getting a reward for every transaction.
There is an extra layer of protection that ensures the user’s safety and to have control over the transaction which they have made. However, in spite of this protection, users have to do minimum basic checks like account number or phone number and name while transferring the amount. It is the fastest way to make any kind of payment like utility bills, online merchant transactions, transferring to a bank account, and transferring to an individual.
Founded in December 2008, the NPCI is a not-for-profit organisation registered under Section 8 of the Companies Act 2013, established by the Reserve Bank of India and the Indian Banks' Association.
https://en.wikipedia.org › wiki › National_Payments_Corporat...
, the UPI transaction limit for normal UPI transactions is ₹1 lakh per day. Moreover, NCPI allows a maximum of 20 UPI transactions per day. The maximum UPI daily transfer limit can vary from bank to bank, ranging between Rs.
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 and healthcare. The maximum UPI daily transfer limit can change from bank to bank between Rs.25,000 to Rs.1 lakh.
UPI transaction limit per day is set at Rs 1 lakh, according to the NPCI, the RBI-regulated entity that built UPI. However, the maximum limit can change from bank to bank. UPI transaction limit can be categorised as: Limit of the transaction amount, that is, the maximum amount of money that can be transferred via UPI.
The Reserve Bank of India (RBI) has raised the transaction limit for Unified Payments Interface (UPI) payments from ₹1 lakh to ₹5 lakh for transactions involving hospitals and educational institutions. This move aims to facilitate high-value, real-time payments, and instant settlements in critical sectors.
Why my SBI UPI limit is Rs.5,000? National Payment Corporation of India sets the UPI transaction limit to Rs.5,000 for all UPI users. You can use the SBI online banking app to set a new UPI transaction limit of up to Rs.1,00,000.
Changes to Google Pay balance: Starting June 4, 2024, you are no longer able to add money to your balance. You can continue to view and transfer your funds to your bank account after June 4, 2024 from the Google Wallet website. Learn more about transferring money out of Google Pay.
The Gpay limit per day for money transfers for users in India is ₹1,00,000. Moreover, in 24 hours you can send money only a maximum of 10 times in GPay or any other UPI app.
As per NPCI guidelines, the maximum amount for one UPI transaction is ₹1 Lakh for P2P transfers and most merchant payments. However, for some P2M transactions like credit card payments, loan repayments, and transactions related to capital markets, the limit is ₹2 Lakhs.
Google Pay has introduced a new charge of Rs 3 for users who want to recharge their mobile phones using the app's UPI service. This fee applies when users purchase prepaid plans through Google Pay, marking a change from the app's previous policy of not charging extra for such transactions.
There is no limit or maximum amount for NEFT Transactions. However, each bank may have certain specified limits for their NEFT services. For example, HDFC Bank has an NEFT Transfer Limit of Rs. 25 Lakhs per day per customer ID if the transaction is done through online mode.
As per the 2024 NCPI guidelines, a merchant has to pay an interchange fee of up to 1.1% of the transaction amount on UPI transactions above Rs. 2000. These charges are applicable for transactions made through prepaid payment instruments (PPI) like wallets, Amazon Pay, Google Pay, Phonepe, etc.
Using IMPS, you can transfer comparatively lower amounts, up to Rs. 2 lakhs, instantly. So, you can think of IMPS as the fund transfer mode that has the best features of both RTGS and NEFT. You can transfer amounts as low as you want, any time you want, with instant results.
From 2024, merchants who receive more than Rs. 2000 through PPIs like mobile wallets must pay a transaction fee of 1.1% to the PPI. However, users who pay through PPIs and choose UPI payments need not pay any fees. Personal transactions are always free through PPIs.
How Much Money Can You Transfer via UPI, and What is the General Limit? Ideally, the limit on UPI transactions is Rs 1 lakh which can be made in 20 transactions per day. The maximum payment we can make through UPI varies from bank to bank, and the table below mentions it.
The maximum limit is Rs. 1 lakh per day, and for new UPI users, the limit is only Rs. 5,000 for the first 24 hours from registration. This limit can not be increased.
If you wish to send more money or conduct a greater number of transactions, you will have to wait for the 24 hour time period to get over. GPay allows you to request a maximum limit of Rs. 2000 in a day via the Virtual Payment Address (VPA) in UPI to avoid any kind of cyber fraud.
Banks like HDFC, ICICI, and Yes Bank implement changes in May 2024. HDFC extends Senior Citizen Care FD deadline. ICICI updates savings account charges, and Yes Bank revises fee schedules and ATM card charges.
Google Pay has introduced a new charge of Rs 3 for users who want to recharge their mobile phones using the app's UPI service. This fee applies when users purchase prepaid plans through Google Pay, marking a change from the app's previous policy of not charging extra for such transactions.
According to a survey published in March 2024 in India, 23 percent of the respondents did 11 to 20 UPI transactions on average each month in India. Additionally, about 13 percent of the respondents did over 50 transactions monthly on average using UPI.
Introduction: My name is Arielle Torp, I am a comfortable, kind, zealous, lovely, jolly, colorful, adventurous person who loves writing and wants to share my knowledge and understanding with you.
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