Unified Payments Interface (UPI) has transformed the way Indians handle daily payments. From buying groceries to paying hospital bills, a quick scan and tap is often all it takes. However, while UPI offers unmatched convenience, many users are unaware of the transaction limits set for security and system stability.

If you have ever tried transferring a large amount and hit a payment ceiling, you are not alone. Here is a detailed guide explaining the daily UPI transaction limit, special exemptions, and how you can manage or increase your limit within allowed rules.

What Is the Daily UPI Transaction Limit?

The daily transfer cap for person-to-person (P2P) transactions is generally ₹1 lakh within 24 hours. This means you cannot send more than ₹1,00,000 in total through UPI in a single day.

In addition to the monetary cap, most banks also restrict the number of transactions to 20 per day. Even if you send small amounts, once you complete 20 transactions, you will need to wait until the next day to initiate another transfer.

These rules are framed by the National Payments Corporation of India (NPCI), which operates and regulates the UPI system. The limits are designed to reduce fraud risks and ensure smooth functioning of digital payment infrastructure.

Payments Where You Can Transfer Up to ₹5 Lakh

The good news is that the ₹1 lakh cap does not apply to every type of payment. NPCI has allowed higher limits — up to ₹5 lakh per transaction — for specific essential categories. These include:

1. Hospital and Medical Education Payments

Large payments related to hospital bills, emergency medical services, or medical education fees are eligible for higher transfer limits. This helps families manage urgent healthcare expenses without disruption.

2. Educational Institutions

School and college fee payments fall under the higher transaction bracket. This makes it easier for parents and students to handle annual or semester payments digitally.

3. IPOs and Government Securities

Investments in Initial Public Offerings (IPOs) and purchases of government bonds are also covered under the extended limit. This encourages secure and seamless digital participation in financial markets.

4. Tax Payments

Income tax, GST, and other government-related payments can exceed ₹1 lakh per transaction under the permitted categories.

For these use cases, users can make payments up to ₹5 lakh without being restricted by the standard daily cap.

Can You Increase Your UPI Limit Beyond ₹1 Lakh?

A common question among users is whether they can raise their UPI limit above ₹1 lakh. The answer is straightforward:

You cannot exceed the maximum cap set by NPCI for regular transactions. However, if your bank has set a lower internal limit — such as ₹25,000 or ₹50,000 per day — you may be able to increase it up to ₹1 lakh.

How to Check and Modify Your Limit

1. Use Your Bank’s Mobile App
Log in to your bank’s official mobile banking application. Navigate to the “UPI Settings,” “Profile,” or “Transaction Limit” section. Some banks allow customers to adjust their daily UPI limit within the permitted range.

2. Understand Your Bank’s Policy
Each bank follows its own risk management framework. Large banks may allow the full ₹1 lakh limit, while smaller or regional institutions may set more conservative caps. If the option is not visible in your app, you can contact customer care for clarification.

3. New User Cooling Period
If you have recently created a new UPI ID or switched to a new app, there is typically a 24-hour cooling period. During this time, your transfer limit may be restricted to ₹5,000. This temporary cap helps prevent fraudulent activity and protects new users.

Important Safety Tips for Secure UPI Transactions

As digital payments grow, so do fraud attempts. Knowing your limit is important, but safeguarding your account is even more critical.

• Never share your UPI PIN with anyone.

• Remember, you do not need to enter your PIN to receive money.

• Enable biometric security such as fingerprint or face recognition in your payment app.

• Double-check payment requests before approving them.

Staying cautious can protect you from unauthorized transactions and phishing attempts.

Final Thoughts

UPI has made digital payments faster and more accessible than ever. While the ₹1 lakh daily limit applies to most transactions, special categories allow transfers up to ₹5 lakh. Although you cannot exceed the cap set by NPCI, you may increase your bank-defined limit up to the allowed maximum through your banking app.

Understanding these rules ensures smoother financial planning and safer digital transactions. Before initiating large transfers, always verify your bank’s specific UPI policies and stay vigilant against fraud.