UPI Transaction Limit 2025: A Comprehensive Guide for Users and Merchants
Unified Payments Interface (UPI) has redefined digital payments in India. With more than 18 billion transactions valued at over ₹24 lakh crores in March 2025 alone, UPI continues to be the most trusted payment method for individuals and businesses. As the ecosystem evolves, it’s crucial to understand the transaction limits set for different types of UPI transfers.
In this blog, we’ll break down the UPI transaction limits, sector-specific caps, UPI Lite usage, and the latest regulatory updates for 2025.
What is the UPI Transaction Limit in 2025?
UPI allows instant money transfers 24×7 using just a mobile phone and bank-linked app. However, these transactions are subject to daily, weekly, and monthly limits—defined by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI).
General UPI Transfer Limits in India
Standard Transaction Caps
Per Day Limit: ₹1,00,000 (varies by bank)
Per Transaction Limit via UPI 123Pay: ₹10,000
Maximum Transaction Count: 20 transactions per day (on most platforms like GPay, PhonePe)
High-Value Transactions Allowed Up to ₹5 Lakhs
NPCI permits certain verified categories to go beyond the usual daily cap of ₹1 lakh:
Education Fees
Hospital Bills
Tax Payments
IPO Applications
RBI Retail Direct Payments
These are generally allowed for verified merchants and select platforms.
UPI Transaction Limits for Specific Sectors
Sector-Wise UPI Limit Overview
| Sector | Daily Limit (INR) |
|---|---|
| Capital Markets & Insurance | ₹2,00,000 |
| Foreign Remittances | ₹2,00,000 |
| Education & Healthcare (Verified) | ₹5,00,000 |
UPI Limits by Bank – 2025 Snapshot
UPI transaction limits vary significantly across banks. While most follow the ₹1 lakh per day rule, some offer customized caps.
Selected Bank UPI Transfer Limits
| Bank Name | Per Transaction Limit | Daily Limit |
|---|---|---|
| Axis Bank | ₹1,00,000 | ₹1,00,000 |
| HDFC Bank | ₹5,000–₹1,00,000 | ₹1,00,000 |
| ICICI Bank | ₹10,000–₹25,000 (GPay) | ₹10,000–₹25,000 |
| SBI | ₹1,00,000 | ₹1,00,000 |
| Karnataka Bank | ₹1,00,000 | ₹2,00,000 |
| Union Bank | ₹1,00,000 | ₹2,00,000 |
| DCB Bank | ₹5,000 | ₹5,000 |
Note: Limits can change based on customer relationship, transaction history, or KYC level.
What is UPI LITE and Its Limits in 2025?
UPI LITE is a simplified, PIN-less version of UPI, introduced to support small-value, fast transactions offline.
Key Features of UPI LITE
Per Transaction Limit: ₹1,000
Wallet Balance Limit: ₹5,000 at any time
Auto Top-Up Enabled: Automatic balance refill on threshold trigger
Offline Mode: Works even without an internet connection
This is ideal for small merchants and daily retail payments.
Interchange Fees for UPI Transactions (via PPIs)
For transactions made through Prepaid Payment Instruments (PPIs) like Paytm, Amazon Pay, or PhonePe wallets, interchange fees apply above ₹2,000.
Breakdown of Interchange Fees
| Merchant Category | Interchange Fee |
|---|---|
| Fuel | 0.5% |
| Utilities, Education, Telecom | 0.7% |
| Supermarkets | 0.9% |
| Insurance, Railways, Mutual Funds | 1.1% |
Note: Small and micro businesses are generally exempt.
NPCI Mandate on UPI Transaction IDs – Effective Feb 2025
From February 1, 2025, all UPI Transaction IDs must only use alphanumeric characters.
Impact of This Change
Special characters like
@, #, $, %in transaction IDs will lead to auto-declined payments.Apps failing to update their systems will be non-compliant.
Enhanced standardization and fraud control.
FAQs – UPI Transaction Limit 2025
Q1: What is the UPI transaction limit per day for Google Pay?
A: The daily transfer cap on Google Pay is ₹1,00,000 with a maximum of 20 transactions.
Q2: Can I increase my UPI limit manually?
A: No. The UPI limit is regulated by NPCI and your bank; users cannot alter it.
Q3: Is there a monthly UPI transaction limit?
A: Yes, some banks like Indian Overseas Bank and Andhra Bank set monthly UPI caps for security.
Q4: Is UPI LITE available to everyone?
A: Most leading UPI apps support UPI LITE. Check with your app and bank for eligibility
Q5: Do interchange fees apply to all UPI payments?
A: No. Interchange fees apply only to PPI wallet-based UPI payments above ₹2,000 and not regular bank account transfers.
Conclusion
With new updates and higher limits, UPI continues to empower digital India. Whether you’re paying tuition, buying groceries, or investing in IPOs, knowing your UPI transaction limits can help you avoid transaction failures and manage funds more efficiently.
Need help with setting up UPI for your business?
Power of Factorial Business Solutions offers expert consultancy and compliance services for digital payments, GST, and more.
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