UPI Transaction Limits in 2025. What You Need to Know.

 

The Unified Payments Interface (UPI) has revolutionized digital transactions in India, allowing seamless and instant fund transfers 24/7. Developed by the National Payments Corporation of India (NPCI), UPI is used for everything—from splitting bills with friends to paying taxes and utility bills. But as UPI usage grows, understanding the latest UPI transaction limits in 2025 has become more important than ever for individuals and merchants alike.

Standard UPI Transaction Limits for Individuals

For most users, the daily UPI transaction limit is ₹1 lakh, with a maximum of 20 transactions per day. This standard applies to person-to-person (P2P) and peer-to-merchant (P2M) payments made through popular UPI apps like PhonePe, Google Pay, Paytm, Amazon Pay, and BHIM.

However, new UPI users often face a reduced transaction limit of ₹5,000 for the first 24 hours (Android) or five days (iOS) after registering.

Higher Limits for Specific Transactions

Certain high-value transactions are allowed above the ₹1 lakh cap:
Tax payments: Up to ₹5 lakh per transaction
Education & healthcare payments: Up to ₹5 lakh per transaction
IPO applications and RBI retail direct schemes: Up to ₹5 lakh per transaction
Capital markets, insurance, foreign inward remittances: Up to ₹2 lakh per day
These enhanced limits cater to sectors that require higher transaction values, promoting smoother digital experiences.

Bank-Specific and App-Specific UPI Limits

While NPCI sets the base guidelines, individual banks can impose their own UPI limits on a daily, weekly, or monthly basis:
IDFC Bank: ₹1 lakh weekly; ₹30 lakh monthly
SBI, HDFC, ICICI, Axis: Limits vary, usually within ₹25,000 to ₹1 lakh per day
UPI apps also enforce these limits. For example:
PhonePe, Google Pay, Paytm, Amazon Pay, BHIM: ₹1 lakh daily; 20 transactions max
New users: ₹5,000 limit initially
Always check with your bank or app provider for the most updated limits.

UPI Lite & UPI 123Pay: For Small and Feature Phone Transactions

To expand access and convenience, NPCI introduced UPI Lite and UPI 123Pay:
UPI Lite: Meant for small-value transactions. Limit increased to ₹1,000 per transaction, with a wallet cap of ₹5,000.
UPI 123Pay: Designed for feature phone users. Limit raised to ₹10,000 per transaction, doubling the earlier cap.
These upgrades ensure broader financial inclusion, even without smartphones or internet.

Charges on UPI Transactions

For Individuals
Good news—UPI transactions remain free for most users. Whether you're sending money to a friend or buying groceries, there's no fee for P2P or P2M transactions done directly through bank accounts.
For Merchants Using PPIs
Merchants accepting payments via Prepaid Payment Instruments (PPIs) like wallets (Paytm Wallet, PhonePe Wallet, Amazon Pay) may face interchange fees for transactions above ₹2,000:
Fuel: 0.5%
Utilities, education, agriculture: 0.7%
Supermarkets: 0.9%
Insurance, railways, mutual funds: 1.1%
Small merchants are exempt from these fees for transactions below ₹2,000.

Other Key UPI Rules in 2025

Wallet recharge fee: 0.15% service fee (paid by PPI issuer) on wallet loads over ₹2,000
Volume Cap: NPCI has set a 30% volume cap on UPI apps to avoid monopoly; deadline extended to Dec 31, 2024
GST Charges: There is No GST on UPI transfers, but aggregators may attract 18% GST on small ticket transactions

How to Avoid UPI Transaction Charges as a Merchant

 

Use bank-to-bank UPI instead of wallets to avoid fees
Keep PPI-based transactions below ₹2,000
Negotiate fees with your payment service provider

Understanding UPI transaction limits in 2025 is essential for making smooth, secure, and efficient digital payments. While most users enjoy free and easy transactions, certain high-value payments and merchant scenarios do come with specific limits and charges.

By staying informed about your bank-specific UPI limits, app rules, and NPCI guidelines, you can avoid transaction failures and manage your payments with confidence.