UPI Limit Increased Unified Payments Interface (UPI) has changed the way we send and receive money in India. It is fast, easy, and available 24/7. Most people use it for daily payments whether it’s paying at a shop, sending money to a friend, or making online purchases. But until recently, there was a limit on how much money you could transfer in a day. Now, that limit has increased!
Let’s understand in simple words what this new change means and how it can help you.
What Is UPI?
UPI is a payment system that allows you to send money directly from your bank account to another person’s bank account using your mobile phone. You don’t need to remember long bank account numbers. Just use a UPI ID or scan a QR code.
Popular UPI apps include:
- PhonePe
- Google Pay
- Paytm
- BHIM
What Was the Old UPI Transfer Limit?
Earlier, you could only send up to ₹1 lakh per day using UPI from most apps and banks. This limit was set by the National Payments Corporation of India (NPCI) for security reasons.
However, for specific cases like buying government bonds, paying for IPOs (Initial Public Offerings), or investing in mutual funds, the limit was already higher.
What Is the New UPI Limit?
The Reserve Bank of India (RBI) has recently increased the UPI daily limit to ₹5 lakh — but only for specific payments like:
- Hospital bills
- Education fees
- Insurance payments
- Mutual fund investments
- Government bonds
- Credit card bill payments
So, if you’re paying for your child’s college fees or settling a hospital bill, you can now pay up to ₹5 lakh through UPI in a single day.
Overview Table: UPI Limits at a Glance
| Type of Payment | Old Limit | New Limit |
| Regular UPI transactions | ₹1 lakh/day | ₹1 lakh/day |
| Hospital & Education payments | ₹1 lakh/day | ₹5 lakh/day |
| Mutual Funds, Insurance, Bonds | ₹1 lakh/day | ₹5 lakh/day |
| Credit Card bill via UPI | ₹1 lakh/day | ₹5 lakh/day |
| IPO & Govt-related payments | Already ₹5 lakh/day | ₹5 lakh/day |
Who Can Use the ₹5 Lakh UPI Limit?
Not everyone can automatically use the ₹5 lakh UPI limit. You need to check with your bank and UPI app whether they support this new limit. Also, the UPI app must be updated to support this higher transfer.
Banks may require:
- Extra verification
- OTP or biometric checks
- Updated UPI apps
- KYC compliance
Why Was This Change Made?
The RBI made this change to help people make big payments easily, especially for important things like:
- Paying for hospital treatment
- Paying for college or school fees
- Investing in mutual funds or buying government schemes
Earlier, people had to break the payment into smaller parts or use NEFT/RTGS. Now, UPI becomes a one-stop solution even for large payments.
Benefits of the Increased UPI Limit
- Faster transactions – No need to wait for NEFT/RTGS hours.
- Convenience – Pay large bills anytime, from your phone.
- Secure – UPI uses multi-layered security like PINs, OTPs, and biometrics.
- Less paperwork – No forms or bank visits needed.
Important Things to Remember
- Not for all transactions: The ₹5 lakh limit is not for shopping or daily transfers.
- Check with your bank: Some banks may not have updated their systems yet.
- Use trusted apps: Always use secure UPI apps with proper verification.
- Stay alert: Be careful about fraud and scams. Don’t share your UPI PIN.
How to Check Your UPI Limit
Here’s how you can check your current UPI limit:
- Open your UPI app (like PhonePe, GPay, Paytm).
- Go to “Bank Account” section.
- Select your linked bank.
- You’ll see your daily limit there.
Or you can call your bank’s customer care to confirm the updated UPI limit for special payments.
Final Words
This new update in UPI limits is a big step towards making digital payments more powerful and flexible in India. Whether you are a student paying fees, a patient at a hospital, or someone investing in financial products, the new ₹5 lakh UPI limit makes life easier.
