UPI transaction limits explained: From ₹1,000 to ₹5 lakh, how much can you transfer?

The commonly cited limit for a standard UPI transaction is generally ₹1 lakh. However, this is not a universal ceiling applicable to every payment made through the Unified Payments Interface (UPI).

The National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) have permitted higher transaction limits for certain categories. These include tax payments, initial public offerings (IPOs), hospitals and educational institutions, among others.

UPI also has separate transaction limits for products such as UPI Lite and UPI 123Pay.

So, before making a large payment, it is important to know which limit applies to your particular transaction.

Regular UPI transactions: ₹1 lakh

For ordinary UPI payments, the transaction limit is generally capped at ₹1 lakh, as prescribed by NPCI.

However, regulators have gradually raised the permissible ceiling for specific types of payments. Higher limits are available for selected categories, including capital-market transactions, IPO applications, loan collections, insurance, healthcare and education.

This means the amount a person can transfer through UPI depends partly on the purpose of the payment.

Tax payments can go up to ₹5 lakh

Tax payments are among the categories that have received a higher UPI ceiling.

The RBI increased the transaction limit for tax payments from ₹1 lakh to ₹5 lakh. Therefore, a taxpayer making an eligible payment of ₹3 lakh, for example, can use UPI without being restricted by the standard ₹1 lakh limit.

The ₹5 lakh ceiling also covers IPO applications and transactions under the RBI Retail Direct Scheme. Payments made to hospitals and educational institutions can similarly be made through UPI up to ₹5 lakh per transaction.

For certain capital-market transactions and insurance payments, the applicable UPI transaction limit is ₹2 lakh.

UPI Lite and UPI 123Pay have separate ceilings

Not all UPI products follow the limits applicable to regular UPI.

UPI Lite, designed primarily for smaller-value payments, permits transactions of up to ₹1,000 each. Its maximum balance has been set at ₹5,000.

UPI 123Pay, meanwhile, was introduced to enable UPI payments through feature phones. It has a higher per-transaction ceiling of ₹10,000.

These products therefore operate under their own transaction rules rather than the standard UPI limits.

Your bank could impose a lower limit

Even when a transaction falls within the maximum limit permitted by NPCI, a user may not necessarily be able to make the payment for that full amount.

Banks that participate in UPI can establish their own internal transaction limits, provided these remain within the overall regulatory framework.

Consequently, if a payment is within the applicable UPI ceiling but is nevertheless declined, users should check the transaction limits imposed by their bank or the UPI application they are using.

The key point is that ₹1 lakh should not be treated as a blanket UPI limit. The maximum amount you can pay depends on the category of transaction, the UPI product being used and, potentially, the limits set by your bank.