There is no single UPI limit or universal daily cap that applies to every payment. The amount you can send depends on the transaction type, the National Payments Corporation of India (NPCI) ceiling for that type, your bank’s internal cap, your app, and— for merchant payments—whether the merchant is eligible for an enhanced limit. NPCI’s familiar FAQ figure is up to ₹1 lakh per ordinary UPI transaction, but it is a headline figure, not a guarantee that your bank or app will allow it.
Charges also depend on how the payment is funded. The Reserve Bank of India (RBI) says merchant discount rate (MDR) is not collected for prescribed UPI payment modes from 1 January 2020. That rule does not mean every UPI-linked product, credit facility, international payment or separately provided service is always free.
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What the UPI limit actually means
UPI is an instant payment system developed by NPCI, an RBI-regulated entity. Its limits are not one universal number. A payment can be a person-to-person (P2P) transfer, a merchant purchase, a bill or tax payment, an IPO application, a Retail Direct Scheme investment, a payment from a prepaid instrument (PPI), a Credit Line on UPI transaction, a UPI Circle payment, or a cash withdrawal at an authorised outlet. Each category can have different rules.
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- NPCI ceiling: the network-level maximum for a qualifying transaction category.
- Bank or issuer limit: the lower cap your account, debit account, PPI issuer or credit-line issuer applies.
- Payment-specific eligibility: requirements such as a verified merchant, a supported account, a compliant app, or a particular investment channel.
The amount displayed when you enter a payment is therefore more useful than a generic number found in a search result. A transaction can be within an NPCI ceiling and still be rejected because your bank, account, app, merchant or device has a lower limit.
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Published NPCI ceilings by payment type
NPCI’s FAQ states that ordinary UPI transactions can be up to ₹1 lakh per transaction. The same FAQ lists higher figures for selected categories. Because the FAQ is undated and later instructions have changed some category ceilings, treat it as a summary and verify the current amount shown by your bank or app.
| Transaction or use case | Published NPCI figure | Qualification | What to confirm |
|---|---|---|---|
| Ordinary UPI transfer or payment | Up to ₹1 lakh per transaction | NPCI FAQ headline figure; not a promise that every bank supports the maximum | Your bank’s per-transaction and daily controls in the app |
| Capital markets, collections, insurance and foreign inward remittances | Up to ₹2 lakh in the NPCI FAQ | Category and participant eligibility apply; later circulars may alter ceilings | Whether the merchant or institution is supported and verified |
| IPO applications and Retail Direct Scheme transactions | Up to ₹5 lakh in the NPCI FAQ | Only for the specified investment channels and compliant participants | The mandate amount permitted by your bank and the platform |
| P2P transfers under the 28 August 2025 circular | Existing guidance continues | The circular says the per-transaction P2P limit remains under extant guidelines | Do not assume a higher merchant ceiling applies to a transfer to another person |
| UPI Circle | ₹5,000 per transaction per device; ₹15,000 per month per device | Separate delegated-payment feature; up to ₹2,000 during the first 24 hours after a new device is linked | Circle settings, device status and the number of linked devices |
| UPI Cash Point withdrawal | ₹5,000 per transaction | Cash withdrawal at an authorised Business Correspondent outlet; other regulatory limits may apply | Outlet authorisation and available withdrawal balance |
The 28 August 2025 NPCI circular is important because it raises limits for specified categories, but only for verified merchants that meet relevant NPCI requirements. It also allows a member bank to set its own internal limit within the NPCI ceiling. The circular does not turn every merchant or P2P payment into a ₹2 lakh or ₹5 lakh transaction.
Why your bank or app may allow less
Network limits are maximums, not entitlements. Banks can impose lower limits for risk management, account type, customer profile, device registration, or a newly added beneficiary. An app may also enforce a lower amount than the network ceiling, and a merchant’s acquiring bank may not have enabled an enhanced category.
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A payment can fail even when the rupee amount appears below ₹1 lakh if you have already used part of a daily allowance, entered the wrong UPI PIN too many times, changed your SIM or device, or triggered a bank’s fraud controls. A newly registered device may have a temporary restriction. Some banks also distinguish between the amount you can send in one transaction and the total you can send during a day.
No exact, universal P2P daily cap is established by the official material described here. Do not infer one from the ₹1 lakh per-transaction figure. Your bank’s own screen is the practical source for your account.
How to check the limit before sending money
- Identify the payment type. Decide whether you are paying another person, a merchant, a bill, an investment platform, a PPI, a credit line, or an overseas merchant. The category determines which ceiling could apply.
- Open the bank or UPI app’s payment screen. Select the linked account or funding source, enter the recipient or scan the QR code, and type the amount. Many apps display an error or maximum only after the amount is entered; checking before confirming avoids an unnecessary debit attempt.
- Check the account and device status. Confirm that the intended bank account is selected, the mobile number is registered with that bank, and the device or SIM has not recently been changed. For a new device, look for a temporary cap.
- Review the confirmation page. Read the recipient name, amount, funding source and any displayed fee, interest or exchange-rate information. Do not rely on a saved payee name alone.
- For large merchant payments, verify eligibility. Ask whether the merchant is verified for the relevant enhanced category. A merchant QR code by itself does not prove that the higher ceiling is enabled.
- Check your bank’s help or limit controls. Search the app for UPI limits, transaction limits, profile limits or security settings. If the app does not state the amount, contact the issuing bank and ask for both the per-transaction and daily UPI caps for your account.
- Use a safer fallback if needed. If a large payment is rejected, do not repeatedly retry. Confirm the reason first, then ask the recipient whether a supported alternative payment method is available.
UPI charges: MDR is not the same as every user cost
MDR is the fee charged within a merchant payment acceptance arrangement. RBI material says the government directed that MDR shall not be collected for transactions through UPI and RuPay debit cards effective 1 January 2020. A related RBI publication describes no charge, including MDR, for payments through the prescribed electronic modes UPI (BHIM-UPI) and UPI QR code from that date.
This is a merchant-payment rule. It does not establish a universal price list for every UPI-linked source or service. A user could still encounter a cost associated with a credit product, currency conversion, an issuer’s processing service, a separately disclosed convenience service, or an international transaction. The person or merchant who bears a fee and the kind of fee involved must be identified separately.
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How the funding source changes the answer
Bank-account UPI payments
For a normal domestic payment funded directly from a linked bank account, the principal amount is normally the amount you approve in the app. Whether any additional service charge applies depends on the bank, product and transaction type. Read the final confirmation screen and your bank’s published terms rather than assuming a generic “UPI is free” statement covers every situation.
Full-KYC PPI linked to UPI
NPCI states that, for full-KYC PPIs linked to UPI, no UPI transaction charges are payable by the customer or PPI holder, and no charge applies for receiving such transactions. That statement is specific to the PPI-on-UPI use case. It should not be extended automatically to unrelated wallet services, cash-out arrangements or other products.
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Credit Line on UPI
A credit line is borrowing, not the same as a bank-account debit. NPCI’s product information says interest, processing fees and other Credit Line on UPI charges may vary by issuer bank. Before authorising, check the issuer’s rate, billing cycle, grace period, late-payment consequences and any one-time or recurring processing charge. The absence of MDR for a merchant does not cancel the borrower’s contractual cost.
International merchant payments
For an overseas merchant, review the final amount in both the foreign currency and Indian rupees. NPCI advises users to check the applicable exchange rates or fees. The official information does not provide one universal conversion rate or fee, so the amount can differ with the issuer, network, merchant location and timing of settlement. Keep a screenshot or receipt showing the currency and rupee amount you approved.
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Special channels that should not be confused with ordinary UPI
UPI Circle
UPI Circle lets a primary user authorise secondary users or devices under a separate control structure. NPCI lists a ₹5,000 per-transaction limit per device and ₹15,000 per month per device. During the first 24 hours after a new device is linked, the limit is ₹2,000. The page also says a maximum of five secondary devices or software can be linked. These are Circle limits, not the ordinary P2P ceiling.
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UPI Cash Point
At an authorised Business Correspondent outlet, NPCI lists a ₹5,000 limit for each UPI cash-withdrawal transaction, subject to other regulatory limits. This is a cash-access rule; it does not tell you how much you can transfer to another person’s bank account.
What to do when a payment is declined
- “Limit exceeded”: Check both the single-payment amount and the amount already used today. Ask the bank for the remaining allowance rather than retrying blindly.
- “Merchant not eligible” or a lower maximum: The enhanced category ceiling may require a verified merchant or a particular participant. Confirm eligibility with the merchant or use the amount the app permits.
- “Bank declined” without a limit message: Review account balance, debit freezes, device registration and fraud alerts. Your bank may have applied a temporary risk block.
- Payment pending: Do not initiate a duplicate payment immediately. Check the transaction history and wait for the status to settle or for the bank’s stated reversal window.
- Credit-line fee or interest shown: Treat it as an issuer charge. Read the credit agreement and contact the issuer before proceeding if the cost is unexpected.
A practical checklist for a large or unusual payment
- Write down the recipient, purpose and exact amount.
- Classify the transaction as P2P, merchant, investment, PPI, credit, Circle, cash withdrawal or international.
- Check the app’s permitted amount using the correct linked account or source.
- Confirm any category requirement, such as a verified merchant or supported investment channel.
- Read the confirmation page for fees, interest, exchange rate and the final payable amount.
- Keep the transaction reference, receipt and any bank message.
- If the transaction fails, contact the issuing bank with the reference number and error text; do not assume the network headline ceiling is the bank’s promise.
Bottom line for everyday decisions
Use ₹1 lakh only as NPCI’s headline figure for an ordinary UPI transaction, not as a guaranteed allowance. Category-specific ceilings can be higher, including the FAQ figures of ₹2 lakh for selected categories and ₹5 lakh for IPO and Retail Direct Scheme transactions, but the 28 August 2025 circular limits enhanced amounts to qualifying verified merchants and preserves existing P2P guidance. Your bank may set a lower cap.
For charges, distinguish merchant MDR from the cost of your funding source. RBI’s no-MDR rule covers prescribed UPI modes from 1 January 2020; it does not answer what a credit line, overseas conversion or separately provided service may cost. The safest habit is to check the amount and charge displayed for the exact transaction in your bank or UPI app before entering your PIN.
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