In today’s fast-paced digital economy, the Unified Payments Interface (UPI) has revolutionized the way we transfer money in India. UPI has gained widespread popularity due to its simplicity, speed, and security. However, understanding the transaction limits is crucial to making the most of this payment system. One of the key updates in the UPI ecosystem is the new UPI ₹500,000 limit, allowing users to transfer up to ₹5 lakh in a single transaction. This article dives deep into this limit, its implications, and how to navigate the system for seamless digital transactions.
What is the UPI ₹500,000 Limit?
As part of the ongoing efforts to enhance the UPI system and foster a cashless economy in India, the National Payments Corporation of India (NPCI) has recently updated the UPI transaction limits. The ₹500,000 UPI limit means that users can now transfer up to ₹5 lakh in a single UPI transaction.
This update is particularly significant for businesses, large transactions, and individuals who wish to move large sums of money quickly and securely. The increased limit also aligns with the government’s goal to promote digital transactions and reduce the reliance on cash-based payments.
Why is the UPI ₹500,000 Limit Important?
With the new ₹500,000 limit, UPI users can now make larger transactions more efficiently. Before this update, the UPI transaction limit was ₹1 lakh, which was limiting for those needing to transfer higher amounts. The increase to ₹5 lakh allows users to:
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Make large payments: Ideal for businesses, real estate transactions, or any other scenario where large sums need to be transferred.
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Reduce dependency on other banking methods: This update makes UPI a more versatile and powerful tool, reducing the need for alternative methods like wire transfers or cheques.
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Boost financial inclusion: By enabling larger transactions on a trusted platform, the UPI system is helping more people engage in the digital economy.
How to Use the UPI ₹500,000 Limit?
To utilize the ₹500,000 UPI limit, your bank and the fintech apps you use (such as Google Pay, PhonePe, or Paytm) need to support this updated limit. As of 2025, several major banks and apps have integrated this change, but it’s important to confirm with your specific bank or app whether the updated limit applies to your account.
Steps to Make a ₹5 Lakh UPI Transfer:
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Link your bank account: Make sure your bank account is linked to a UPI-enabled mobile banking app.
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Check your UPI limit: Different banks may have varying limits. For example, the limit for Google Pay and PhonePe may be different based on bank policies.
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Authenticate with UPI PIN: To ensure secure transactions, UPI requires the user to authenticate each transfer using their UPI PIN.
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Initiate the transfer: Once your account is set up, you can transfer amounts up to ₹500,000 using your chosen app. Ensure that your bank supports the new limit.
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Confirm the transaction: After entering the recipient’s details and amount, confirm the transfer. You will receive a confirmation message once the payment is processed.
UPI Transaction Limit 2025: What’s Changed?
The UPI transaction limit has been updated multiple times to keep up with the growing demand for digital payments. With the 2025 update, the ₹500,000 limit is set to make UPI a more practical tool for both everyday users and businesses.
New UPI Limit Per Day
The daily limit for UPI transactions, which refers to the total amount you can transfer in a day, remains an important factor. As of 2025, the daily limit for UPI transactions has been revised, but it is essential to note that the ₹500,000 limit only applies to a single transaction. This means that while you can transfer up to ₹5 lakh in one go, your total daily transaction limit may still be lower.
For example:
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If your bank’s daily limit is ₹1 lakh, you can only send ₹1 lakh in total across all transactions in one day, even if individual transactions can go up to ₹5 lakh.
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Some banks allow users to request an increase in their daily UPI limit. This is typically done through mobile banking apps or by visiting a bank branch.
UPI Daily Limit Increase
In case you require more flexibility with your transactions, you can request an increase in your daily UPI limit. Some banks allow users to raise the ceiling on their UPI transactions, subject to certain conditions. You may need to provide additional documentation or fulfill security protocols, like enabling two-factor authentication or linking your bank account with additional verification methods.
UPI Transfer Maximum Amount: How to Increase Your Limit?
If you are someone who regularly deals with large sums of money, it’s crucial to understand how to increase your UPI transaction limit. Banks and apps like PhonePe and Google Pay have set thresholds that you need to cross in order to unlock higher limits.
How to Increase Your UPI Limit
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Contact your bank: Some banks automatically increase your transaction limit once your account reaches a certain tier. If not, you can request an increase.
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Upgrade your account: Some banks require you to upgrade your account to a premium or business account to avail higher UPI limits.
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Submit KYC documents: Complete your Know-Your-Customer (KYC) process to ensure that your account is verified. This is often required for increased limits.
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Enable advanced security features: Some banks require users to enable additional security protocols like UPI PIN or two-factor authentication to increase limits.
UPI Limit for Google Pay, PhonePe, and Other Fintech Apps in India
Each fintech app, such as Google Pay, PhonePe, and others, have their own policies regarding UPI limits, which are based on your bank’s policies. For instance:
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PhonePe UPI Limit ₹500,000: PhonePe users can transfer up to ₹5 lakh per transaction, provided their bank supports it.
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Google Pay UPI Limit ₹500,000: Google Pay follows similar guidelines, with the option for users to transfer up to ₹5 lakh in a single transaction.
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Paytm UPI Limit: Paytm, too, supports the ₹500,000 UPI transaction limit, although some banks may impose daily transaction caps.
Other Considerations for UPI Limits
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Bank UPI Limit Update: Some banks may still operate under older limits or specific restrictions. Always check with your bank to confirm the current limits.
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Mobile Banking Apps: These apps act as intermediaries between your bank and UPI. Make sure your mobile banking app is updated to reflect the latest policies.
FAQs About UPI ₹500,000 Limit
1. What is the maximum UPI transaction limit in 2025?
The maximum UPI transaction limit in 2025 is ₹500,000 per transaction. However, daily limits may differ based on your bank’s policies.
2. How can I transfer ₹5 lakh using UPI?
To transfer ₹5 lakh using UPI, ensure that your bank and UPI app support the ₹500,000 limit. You will need to authenticate the transaction using your UPI PIN.
3. Can I increase my UPI daily transaction limit?
Yes, many banks allow users to request an increase in their daily UPI limit. Contact your bank’s customer service for more details.
4. What are the security features of UPI transactions?
UPI transactions are secured through UPI PIN authentication, which ensures that only authorized users can complete transactions.
5. How do I link my bank account to UPI?
To link your bank account to UPI, download a UPI-enabled app, enter your bank details, and follow the instructions to link your account.
6. Is UPI safe for large transactions?
Yes, UPI transactions are secured by encryption, and you authenticate each transfer using your UPI PIN, ensuring that your transactions are safe.
7. Are there any fees for large UPI transfers?
Most UPI transactions are free, but some banks may charge fees for certain types of transfers or after a certain limit. Check with your bank for specific charges.
Conclusion
The UPI ₹500,000 limit is a significant step forward in making digital transactions more convenient, especially for larger payments. It empowers users, businesses, and institutions to transfer large sums of money quickly and securely, contributing to a growing cashless economy in India. To make the most of this feature, always ensure that your bank and mobile banking app support the latest transaction limits.
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