Everything You Need to Know About Current Account UPI

UPI has changed the way we pay and receive money. It is quick, easy and safe. Most people know UPI works with savings accounts. But what about businesses that use current accounts? Many business owners ask if UPI can be linked with a current account. The answer is yes. 

For business owners, having a current account UPI is very useful. It helps them collect payments and manage transactions without relying only on card machines or cash.

Read on to explore more about how the current account UPI works, why it is useful for businesses and what limits apply.

What is UPI

UPI stands for Unified Payments Interface. It is a system that lets you transfer money instantly between bank accounts. All you need is a mobile number or UPI ID. You don’t have to enter account numbers or IFSC codes every time. It works 24/7, including weekends and holidays. You can use it to send or receive money, pay bills or even make purchases online and offline.

UPI is regulated by the National Payments Corporation of India (NPCI), which ensures security and standardisation. It supports multiple banks on a single app, making it easy for both individuals and businesses to manage transactions in one place.

Can UPI Be Linked to a Current Account

Yes, UPI can be linked to a current account. Just like a savings account, a business current account can also be connected with UPI apps. This lets you send and receive payments directly from your current account.

UPI is very useful for small and medium businesses that handle frequent, smaller payments. Unlike Point of Sale (POS) machines where you wait for settlement, UPI credits money instantly. This keeps cash flow smooth and improves liquidity.

Why Businesses Should Use Current Account UPI

If you run a business, having UPI linked to your current account offers many advantages. Here are some reasons why:

• Instant payments: Customers can pay you in seconds with no delays
• Low cost: Unlike card machines, UPI does not come with high transaction charges
• Cashless convenience: Payments go straight to your bank account
• Better tracking: All UPI payments reflect in your account statement, making it easy to track income
• Customer preference: UPI is now the default way to pay for many customers

How to Set Up UPI for a Current Account

Setting up UPI for your current account is simple. Here are the steps:

• Download a UPI app of your choice
• Register with your mobile number linked to your current account
• Select your bank and verify using OTP
• Create your UPI PIN
• Start making and receiving payments from your current account

It takes only a few minutes to get started. Once linked, you can use it just like you do with a savings account.

Banks may ask for extra KYC before linking UPI to a current account. Keep your mobile number updated since OTPs are needed for setup.

Benefits of Using UPI with a Current Account

Here’s why using UPI with a current account is beneficial:

• Ease of use: Payments can be made with just a UPI ID or QR code
• Speed: Transactions happen instantly, even on weekends and holidays
• Safety: Every transaction is protected by your UPI PIN
• Business efficiency: Faster collections mean better cash flow for your business
• Simpler reconciliation: All payments reflect in one bank statement, reducing errors and saving time

UPI Transaction Limits for Current Accounts

UPI comes with set limits that can differ by bank. For most users, the daily limit is up to ₹1 lakh. Some transactions, like insurance, capital markets or inward remittances allow up to ₹2 lakh. For IPOs and RBI’s Retail Direct Scheme, the limit goes up to ₹5 lakh. Many banks have extended these higher limits to the current accounts of verified businesses, giving them more room for larger payments.

UPI Apps Without Bank Account

To use UPI, you must link a bank account. However, prepaid wallets and some apps may allow limited transactions. But they are not the same as UPI.

So, if you come across claims of UPI apps without bank account, know that they are either wallets or payment gateways. 

Key Points to Remember About UPI for Current Account

• You can link UPI with a current account
• It is very useful for businesses to collect customer payments
• Limits exist, but some banks allow higher limits for current accounts
• Claims of UPI apps without bank account can be misleading, as UPI requires a linked bank account

UPI is no longer limited to savings accounts. Businesses with current accounts can also enjoy their benefits. With quick, low-cost and secure payments, it is one of the best ways to manage transactions.

If you are a business owner, enabling UPI on your current account not only makes collections easier but also positions your business as digital-first. With more customers expecting QR codes and UPI IDs, it’s no longer optional, it’s essential.

And if you want a smarter way to manage your spends, the Fibe Axis Bank Credit Card can be a good fit. It has 0 joining fees and gives you rewards on everyday categories like food, travel and entertainment. It works well alongside your UPI payments, helping you save more while you spend! Download the Fibe App today to get started!

FAQs on UPI for Current Account

Can UPI be used for a current account?

Yes, UPI can be linked to current accounts. It helps businesses collect and send payments directly from their account.

Is there a UPI limit for current accounts?

Yes, most banks set a daily limit of ₹1 lakh. Some banks may allow up to ₹2 lakh or higher for current accounts.

Can UPI replace POS machines for businesses?

For small and medium transactions, yes. UPI is faster and cheaper. But for very large-ticket sales, POS or bank transfers may still be required.