UPI Transaction Limit: Why Do Money Transactions Get Declined?

UPI transaction limit has been set by the National Payments Corporation of India (NPCI) at Rs 1 lakh per day for all mobile applications

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UPI Transaction Limit

UPI transaction limit is an important detail that everyone needs to be educated on considering the fact a large majority of money transactions take place online. According to data released by the National Payments Corporation of India (NPCI) a whopping 12,82,055.01 crore worth of UPI transactions took place in the month of December 2022, and the number of transactions that took place were as many as 7.82 billion.


What is UPI?

The NPCI says that Unified Payments Interface (UPI) is basically a system that powers multiple bank accounts into a single mobile application of any participating bank, merging several banking features, seamless fund routing and merchant payments into one hood. The interface helps with inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile devices, that are registered with banks, to instantly transfer funds between two bank accounts.

What are the Apps Used for UPI Transfers?


While NPCI manages its own app called BHIM for UPI transfers, some of the other third party apps that are commonly used and are UPI-enabled are as follows:

  • Google Pay.
  • Airtel Payments Bank.
  • PhonePe.
  • Paytm.
  • MobiKwik.
  • Amazon Pay.
  • Samsung Pay.
  • WhatsApp Pay.

What is the UPI Transaction Limit Per Day?


NPCI has set a daily transaction limit of Rs 1 lakh per day. However, some of the UPI-enabled banks offer a lesser limit such as Abhyudaya Co-Operative Bank has a UPI transaction limit of Rs 25,000. Similarly, Adarsh Co-op Bank Limited also has a UPI limit of Rs 50,000 per day, and Bank Of Baroda also has a UPI transaction limit of Rs 25,000. 

As far as Google Pay, Airtel Payments Bank, PhonePe, Paytm, MobiKwik, Amazon Pay, Samsung Pay, and WhatsApp Pay are concerned, they all have a UPI transaction limit of Rs 1 lakh a day. However, the number of times transactions may be done differs. For instance, customers will not be able to transact more than ten times a day for Paytm and Google Pay.

Why Do Transactions Get Declined?


Sometimes, transactions conducted by customers tend to get declined and some of the common reasons for the same are as follows:

  • If customers try to send more than Rs 1 lakh in one day across all UPI apps.
  • If transactions are done more than 10 times in one day.
  • If customers have set limitations for themselves through their banks.
  • If more than Rs 2000 is requested from someone.
  • If one tries to send or receive less than Rs 1.

If such issues arise, users can try and fix them by either changing their bank, ending a smaller amount or waiting until the next day.