Why is the UPI transaction limit?

The general daily UPI transaction limit is ₹1,00,000 for most transactions, though this can vary by issuing bank and transaction type (P2P vs. P2M). A recent RBI increase raised the P2P transaction limit from ₹5,000 to ₹10,000 as of October 9, 2024, for certain categories. The purpose of these limits is to enhance security and manage financial risks.