UPI Transaction: Features, Benefits, Maximum Limit

byMehak BaglaLast Updated: May 1, 2024
UPI Transaction, UPI Transaction Limit, What is UPI Transaction
The current transaction limit for regular UPI transactions is Rs 1 lakh per day. For categories such as Capital Markets, Collections, Insurance, and Foreign Inward Remittances have a higher limit of Rs 2 lakh per transaction whereas for Initial Public Offering and Retail Direct Scheme transactions, the limit is Rs 5 lakh. Furthermore, starting from December 8, 2023, the RBI has raised the transaction limit for UPI payments to hospitals and educational institutions to Rs 5 lakh per transaction.

A significant portion of online transactions are conducted via UPI, resulting in its widespread adoption by users. This is because UPI offers a simple and convenient way to transfer money instantly between bank accounts. All you need to do is use a UPI ID, mobile number, or the receiver’s bank account details. The entire process takes just a few seconds. To make the most of UPI, it’s helpful to understand its features, maximum limits, and other important details.

What is UPI Transaction?

A UPI transaction refers to a financial transaction made using the Unified Payments Interface (UPI) system in India. UPI enables users to transfer money instantly between bank accounts using their smartphones or other digital devices. It provides a fast and secure way to make payments, allowing users to send and receive money, pay bills, make online purchases, and conduct various other financial transactions. UPI transactions can be initiated through UPI-enabled apps, where users link their bank accounts and create a unique UPI ID or use a Virtual Payment Address (VPA)*  to facilitate the transfer of funds.

*A VPA (Virtual Payment Address) is like an email address for money transfer in India’s Unified Payments Interface (UPI) system. It allows users to send and receive money securely without sharing their bank account details. Each VPA is linked to a user’s bank account and can be created by connecting their bank account to a UPI-enabled mobile payment app.

Features and Benefits of UPI Transaction

  • Instantaneous transfers: UPI allows for immediate transfer of funds between bank accounts, ensuring quick and convenient transactions.
  • 24/7 availability: UPI transactions can be initiated at any time, providing round-the-clock accessibility for users.
  • Simple and easy-to-use interface: UPI-enabled apps offer a user-friendly interface, making it effortless to navigate and perform transactions.
  • Multiple payment options: UPI supports various payment methods, including scanning QR codes, entering UPI IDs or VPAs, and linking bank accounts directly.
  • Multiple bank account linkage: UPI enables users to link multiple bank accounts to a single UPI ID, providing flexibility and convenience.
  • Bill payments and online purchases: UPI allows users to pay bills, make online purchases, and avail various services seamlessly.
  • Transaction history and receipts: UPI apps provide transaction history and digital receipts, enabling users to keep track of their financial activities.
  • Secure authentication: UPI transactions require multi-factor authentication, ensuring enhanced security and protection against unauthorized access.
  • Immediate refunds: In case of failed transactions, UPI facilitates instant refunds, eliminating the hassle of waiting for reimbursement.
  • Interoperability: UPI works across different banks and payment service providers, allowing users to transact with anyone using UPI, regardless of their bank or app.

UPI Transaction Limit

The current transaction limit for regular UPI transactions remains at Rs 1 lakh per transaction per day. However, specific categories such as Capital Markets, Collections, Insurance, and Foreign Inward Remittances have an increased transaction limit of Rs 2 lakh per transaction. For transactions related to Initial Public Offering and Retail Direct Scheme, the limit is further increased to Rs 5 lakh per transaction.

Note: As of December 8, 2023, the Reserve Bank of India (RBI) has announced an increase in the transaction limit for UPI payments made to hospitals and educational institutions. The transaction limit for these payments has been raised from Rs 1 lakh to Rs 5 lakh per transaction. This update aims to facilitate larger transactions in these sectors.

UPI Transaction Charges on Paytm

There are no transaction charges imposed by Paytm for UPI transactions. Users can make use of Paytm’s UPI service without any additional fees, enjoying the convenience of making transactions without incurring any charges.

How to Make UPI Transaction on Paytm?

Step 1: Open the Paytm app on your smartphone.

Step 2: Choose the option “Scan and Pay” or use the QR code scanner feature on the main screen.

Step 3: Enter the mobile number or name of the receiver. You can select the contact from your phone book or manually enter the number.

Step 4: On the next screen, click on “Pay” and enter the amount you wish to send.

Step 5: Select the preferred mode of payment and proceed. Add a remark or description (optional) to specify the purpose of the transaction.

Step 6: Finally, click on “Pay” to complete the transaction and send money to the receiver.

Note: These steps illustrate the Paytm UPI payment process. While other UPI payment methods are similar, the steps may vary slightly depending on the platform you are using.

Disclaimer: The purpose of this blog is to simplify complex processes for readers’ understanding. Please note that some information and screenshots provided may become outdated or change over time. However, we strive to keep our blogs updated and relevant to provide accurate and helpful information

FAQs

Q: What is the maximum UPI limit?

A: The maximum UPI transaction limit per day is Rs.1 lakh as per NPCI (National Payments Corporation of India).

Q: How many UPI transactions can I make per day?

A: You can make a maximum of 20 UPI transactions per day.

Q: Are there any limitations on UPI app transactions?

A: Paytm UPI allows a maximum transfer of Rs. 1 lakh per day. Through Paytm UPI, you can make transactions of up to Rs. 20,000 per hour. The maximum limit is five transactions per hour and 20 transactions per day via Paytm UPI.

Q: What is the general limit for UPI transactions?

A: The general limit for UPI transactions is Rs. 1 lakh, which can be made in 20 transactions per day.

Q: What are the advantages of using UPI?

A: UPI offers the convenience of making payments without the need to remember and share lengthy bank account details for every transaction. With a UPI ID, users can quickly and easily make payments by entering a unique identifier.

Q: Is UPI payment safe?

A: While UPI transactions are generally safe, it is important to take precautions when using any UPI payment app. Always verify the UPI ID of the receiver before approving a money transaction via a UPI payment app.

You May Also Like