UPI Transaction: Features, Benefits, Maximum Limit

UPI or Unified Payments Interface is a single platform that brings all your bank accounts directly to your mobile device. All you need to complete a UPI transaction is a UPI ID and a UPI PIN.

A research report put out by the State Bank of India (SBI) on December 8 says that digital transactions using the United Payment Interface (UPI) have risen 1.8 times the pre-COVID-19 levels. During October-November 2020, the National Payments Corporation of India (NPCI) processed more than 200 crore UPI transactions worth Rs 3.9 lakh crore in each of the two months. (Source: Money Control)

In this blog, let’s talk about what features UPI has, why you should use it, and how you can transact using UPI.

Understanding UPI

The NPCI (National Payments Corporation of India) and the Reserve Bank of India joined hands to facilitate the transfer of funds from one bank account to another. Thus, came in UPI- Unified Payments Interface. UPI is a single platform that allows its users to make all types of bank-related transactions through their mobile devices, at the comfort of their homes.

Using only a virtual payment address (UPI ID) and a security password (UPI PIN), users can make real-time bank-to-bank transactions. With the help of UPI, one can perform the following transactions-

  • Transfer money from one bank account to another
  • Request money from any individual
  • Make payments at e-commerce sites
  • Pay bills for electricity, water, DTH, broadband, etc.
  • Pay at physical stores, such as confectionery, stationery, etc.

Features of UPI Transaction

UPI has the following features that you should be clearly aware of-

  • UPI payments are very fast and typically payment can be completed within seconds
  • Almost every bank allows UPI transactions through mobile applications
  • Payments are completely safe. To complete a payment, the user needs to have the SIM card of his mobile number present in his phone and also needs to enter the secret MPIN each time
  • UPI transactions allow individuals to request money from some other individual, which is not an option with other payment methods like IMPS, NEFT
  • These mobile payment applications also offer the facility of bill payments, meaning that you can set up timely reminders for all your bill payments and make the payments using the application at just one click
  • In case of any trouble or suspicious activity on your account, you can easily file a complaint using the mobile payment application
  • Payments can be made 24×7
  • It’s completely free!
Read More: Understanding UPI Payment: What is it and How it Works?

Benefits of UPI Transaction

There is no doubt about the role of UPI in making India a cashless economy. The increasing use of UPI speaks for the benefits of UPI transactions. Here are a few of the many benefits of UPI transactions-

  • 24*7 service- Since every UPI transaction is made using a mobile device, it can be accessed at any time of the day or night, and from anywhere. There are no fixed timings when you can carry out transactions, unlike banks.
  • Cash-free transactions- Unlike IMPS, RTGS, and NEFT that charge a fee for transferring funds from one bank to the other, UPI enables absolutely cash-free transactions.
  • Cashless way of payments- For a few decades, cash payments have been replaced with debit/credit cards. However, small payments like the ones at confectionary/stationery shops were not possible through debit/credit cards. The advent of UPI service has enabled making smaller payments at such stores, thus adding to cashless payments.
  • Simple and Fast- UPI transaction does not require the provision of complex details like the bank account number, IFSC or the receiver’s name, and other personal details. All that is required is a UPI ID and a UPI PIN to complete a UPI transaction.
  • Safe and secure- UPI transactions are absolutely safe. UPI transactions are regulated by the Reserve Bank of India & NPCI and mobile payment applications like Paytm follow all the guidelines as laid down by these regulators. Payments can only be initiated from a mobile phone in which your SIM card or the mobile number registered in your Bank is present. Also, you need to confirm your secret UPI PIN before every UPI payment.

UPI Transaction Limit

To ensure the safety and security of transactions, all the payment applications are regulated by the guidelines of RBI. Owing to the current rules and regulations, the present UPI transaction limit per day is Rs. 1 lakh per account, every 24 hours.

However, it is important to note that the actual UPI transaction limit varies from bank to bank, which may also restrict the amount that can be sent at a lower amount too. The maximum UPI transaction limit for the users is set by the bank itself. In case, a user tries to transact for the amount exceeding the daily limit, he/she will be notified with a message stating that “the maximum limit has been reached”. In such cases, the user will have to opt for another method of payment. Also, you can do a maximum of 10 payments from any bank account in a span of 24 hours.

UPI Transaction Charges on Paytm

Paytm is a mobile payments application that supports UPI services.

Paytm does not charge any charges for carrying out any UPI transaction.

Here are some of the reasons why you should carry out UPI transaction on Paytm-

  • Paytm is an easy, simple-to-use application
  • You can carry out a UPI transaction on Paytm using either QR code, UPI ID, or IFSC
  • Paytm follows all the rules and regulations as laid down by the Reserve Bank of India; hence, it is a completely safe and secure platform
  • The Paytm application offers 24*7 customer support service in case of any queries or questions
  • There is a UPI transaction limit per day of Rs. 1 lakh on the Paytm application
  • There are no UPI transaction charges on the Paytm application

How to Make a UPI Transaction?

To make a UPI transaction, you must have a mobile payments application that supports the UPI service. After downloading the application, you can follow either of these ways-

  • Selecting a Contact/Entering Mobile number – Sending money is as simple as sending a message. Just select a phonebook contact or enter a mobile number, specify the amount to be transferred and enter your PIN. That’s it! Your payment will be completed in a few seconds.
  • Scanning a UPI QR code – You can also send money through UPI by scanning the receiver’s QR code. All you need to do is open the mobile payment application like Paytm on your phone, click on ‘Pay’, and select ‘QR code’. Scan the QR code of the receiver and enter the amount to be paid. Now enter your PIN and your payment will be completed in a few seconds.
  • Entering UPI ID – To send money through UPI ID, all you need to do so is open the mobile payment application, and enter the receiver’s UPI ID. After this, you need to enter the amount that needs to be transferred and verify the transaction by entering your MPIN. Your transaction will be completed in a few seconds.
  • Entering Account Number & IFSC – This the traditional way of payments and it is also supported on UPI. You may enter the account number & IFSC of the person you want to send money to, specify the amount and enter your PIN. Your payment will be completed in a few seconds.

FAQs
What is a UPI transaction?
A UPI transaction is one in which a user transfers funds from his/her bank account to the other’s using a mobile payments application, such as Paytm that offers the UPI service.
What is the UPI transaction limit?
The UPI transaction limit is the maximum amount that a user is allowed to transfer from his/her bank account to another. The maximum UPI transaction limit is Rs. 1 lakh.
What will happen if I reach the maximum UPI transaction limit per day?
If you try to transfer more amount after reaching the maximum UPI transaction limit per day, your transaction will fail, and you will receive a notification stating that “you have reached your maximum daily limit”.
What are the benefits of UPI transaction?
UPI transaction offers multiple benefits. A few of them are listed as below-
  • Cashless transactions
  • No additional expenses/fees
  • The easy and convenient payment process
  • Can be accessed 24*7
  • No personal details required
  • Safe and secure way of payment
How much time does it take to complete a UPI transaction?
A UPI transaction can be completed in a few minutes after confirming.
Can I perform a UPI transaction on Paytm?
Yes, you can easily perform a UPI transaction on Paytm. All you need to do is download the application through Google Play Store/App Store and create your account on the application, complete your KYC and start making payments.
Are there any charges on UPI transaction on Paytm?
No, there are no charges on UPI transaction on Paytm. Carrying out a UPI transaction on Paytm is absolutely free of any expenses.
Is it safe to carry out a UPI transaction on Paytm?
Yes, it is absolutely safe to carry out a UPI transaction on Paytm. The mobile payments application follows all the rules and regulations as laid down by the Reserve Bank of India.
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