A Quick Guide on UI Transaction Limit and Charges
Reviewed by: Fibe Research Team
- Updated on: 23 Jun 2025
Reviewed by: Fibe Research Team
Unified Payments Interface (UPI) has made daily money transfers simple and instant. You can pay bills, send money or shop online in seconds. It’s simple, fast and accepted almost everywhere.
But many users still wonder about the UPI payment limit and hidden charges. Can you send ₹1 lakh at once? Are there extra fees after a certain number of transfers?
Here’s a simple guide to clear your doubts.
Yes, UPI is free for all basic uses. You can send money, receive payments or pay merchants directly from your bank account without any charges. This includes peer-to-peer and peer-to-merchant payments using UPI apps like PhonePe, Google Pay or Paytm.
Even scanning QR codes at shops or splitting bills with friends won’t cost you anything. Charges may apply only in special cases. For regular users, UPI continues to be a fast, secure and zero-cost option.
Regular UPI payments don’t attract charges. But UPI payment charges might apply in a few special cases:
The standard UPI payment limit is ₹1 lakh per transaction. In some cases, like insurance or education, it can go up to ₹2 lakh. Some payments, such as hospital bills or IPOs, may even exceed ₹5 lakh. This can be enabled with special approvals.
Most users have a daily transaction limit of ₹1 lakh. Some banks even set lower limits for daily transactions. You can check with your bank to know exactly how many transactions per day in UPI are enabled for you.
Some banks also set a weekly or monthly cap. The UPI transaction limit per month is also bank-specific. NPCI doesn’t fix a monthly cap. For instance, IDFC Bank allows transfers of up to ₹30 lakh per month.
So, the maximum amount transfer through UPI in most cases is ₹1 lakh per payment. If your transfer exceeds the transaction limit of UPI, the payment will fail. You’ll get a message saying the limit is reached. You can try again with a lower amount or wait for the limit to reset.
This fee is paid by merchants to wallet apps like PhonePe or Paytm. It applies only when you use a wallet to make a UPI payment. The charge ranges from 0.5% to 1.1%, depending on the type of service.
For example, supermarket payments may have a 0.9% fee. Insurance or mutual fund payments can attract up to 1%.
As a user, you don’t pay this fee. It doesn’t apply to regular bank-to-bank UPI transfers. Only merchant wallet transactions are affected.
As per the new rule, an interchange fee of up to 1.1% applies to wallet-based UPI payments above ₹2,000. This fee is charged to merchants, not customers. It applies only when a prepaid wallet is used to pay a business. Bank-to-bank UPI transfers remain free.
So, if you send ₹5,000 to a friend or pay a merchant directly from your bank account, there’s no extra charge. The new rule only affects wallet-linked merchant payments.
For everyday users, UPI still works the same, fast and free. But if you’re spending more online these days, it helps to use a card that rewards your spending. With the Fibe Axis Bank Credit Card — a RuPay card, you earn cashback on popular categories without any joining or annual fees. Download the Fibe App today to unlock a smarter way to spend!
No. Basic UPI transactions between bank accounts are free. However, there is a UPI transaction limit per month, and it varies from one bank to another.
All UPI transactions are free for users. The interchange fee applies only to merchants when payments are made through wallets above ₹2,000. This rule does not affect regular users. So you can continue using UPI without worrying about maximum UPI transaction limit charges.
The new rule applies to wallet-based UPI merchant payments above ₹2,000. A 1.1% fee is charged to the merchant, not the user. This does not affect the transaction limit of UPI for regular bank account transfers.
