What is UPI Transaction Limit?
As transactions facilitated by the Unified Payments Interface (UPI) breach record highs, banks have opted for daily limits.
These are over and above the already imposed ceilings mandated by the facilitator, the National Payments Corporation of India (NPCI), in 2021.
At present, users can make up to 20 transactions or ₹1 lakh in a single day — either all at once or through the day.
For certain specific categories of transactions such as the capital markets, collections (such as bills, among others), insurance and forward inward remittances, the limit is ₹2 lakh.
What is UPI Transaction Limit?
In December 2021, the limit for the UPI-based ASBA (Application Supported by Blocked Amount) IPO and retail direct schemes was increased to ₹5 lakh for each transaction.
The conversation now revolves around banks and apps coming up with their own guidelines for transactions.
Why limit is imposed?
Payments interface looks to expand its footprint (recall the boarding of non-resident accounts having international numbers into the ecosystem).
Its growing utility in daily lives.
Limits would help maintain an essential security infrastructure and its seamless functioning.
The interface looks to expand its use-case, as also called for in the proposed pilot project for coin-vending machines with UPI as the facilitator.
The limits are set balancing out customer convenience and potential fraud/risk concerns.
The total number of reported UPI frauds had also increased about 13% in comparison to the previous financial year.
However, this was alongside a decline in the fraud to sales ratio at 0.0015%.
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