Unified Payments Interface, popularly known as UPI, processed 657 crore transactions in August, data released by the National Payments Corporation of India (NPCI) showed. On a month-on-month (m-o-m) basis, UPI transactions grew 4.6 percent in volume terms and 1 percent in value terms.
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The primary reason behind UPI's exponential growth is the hassle-free experience that it offers.
What is UPI?
The Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS infrastructure and allows individuals to instantly transfer money between any two parties' bank accounts.
How UPI works?
Users will only have to set a Virtual Payment Address (VPA) and send money. They can link more than one bank account in a single smartphone app and make fund transfers providing IFSC code or account number. This is a real-time payment system where funds are credited instantly on a real-time basis.
Individuals can use different payments apps like PhonePe, Paytm and Google Pay, apart from BHIM UPI app and their banks’ mobile apps to transfer money via this method.
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UPI transaction limits
The RBI and NPCI have put a cap on the daily transaction limit to Rs 2 lakh per user. There is no minimum value.
Under the NPCI limit, banks could also set their own UPI transaction limits. Consequently, some banks have lowered the UPI transaction cap on their customers.
Here are some per-transaction limits set by banks, and the per-day UPI transaction limit:
| Bank | Single Transaction Limit | Limit/per day |
|---|---|---|
| SBI | Rs 1 Lakh | Rs 1 Lakh |
| HDFC Bank | Rs 1 Lakh | Rs 1 Lakh |
| ICICI Bank | Rs 10,000(25000 for Google Pay users) | Rs 10,000 (25000 for Google Pay users) |
| Andhra Bank | Rs 1 Lakh | Rs 1 Lakh |
| Axis Bank | Rs 1 Lakh | Rs 1 Lakh |
| Canara Bank | Rs 10,000 | Rs 25,000 |
| Dena Bank | Rs 1 Lakh | Rs 1 Lakh |
| Citibank | Rs 1 Lakh | Rs 1 Lakh |
| City Union Bank | Rs 1 Lakh | Rs 1 Lakh |
| Bank of Baroda | Rs 25,000 | Rs 1 Lakh |
| Bank of India | Rs 10,000 | Rs 1 Lakh |
| Central Bank of India | Rs 25,000 | Rs 50,000 |
| Bank of Maharashtra | Rs 1 Lakh | Rs 1 Lakh |
(Source: Clear)
First Published: Sept 9, 2022 4:14 PM IST
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