What is the Current Account UPI limit
28 March, 2024
The Unified Payments Interface (UPI) has transformed digital payment methods in India. It offers a secure and user-friendly platform for instant funds transfer from one bank account to another. Individuals, small and medium-sized enterprises (SMEs), and large corporate houses can use UPI payment systems to send and receive money seamlessly and conveniently.
If you are a business owner, you can download a UPI app on your smartphone and link it to your Current Account to accept payments from your customers. However, for security reasons, the government and banks have imposed certain limits on UPI transactions in India. Being aware of these limits can help you avoid unnecessary hassles or confusion.
UPI limit for Current Account
The UPI limit for Current Accounts differs from that of individual or Savings Accounts. Typically, banks may set higher UPI transaction limits for Current Accounts to accommodate the higher volume of business transactions. Furthermore, the Current Account UPI limit may vary from one bank to another and specific arrangement between the bank and the account holder.
Keep reading to get an idea of the UPI limit for Current Accounts in India, including the daily transaction limit, per transaction limit, and the number of transactions allowed in a day.
Current Account UPI limit for daily transactions
As per the National Payments Corporation of India (NPCI), the daily Current Account UPI transaction limit can range between ₹ 25,000 to ₹ 1 lakh. It means that you cannot transfer or receive more than ₹ 1 lakh through a UPI app within 24 hours. However, you must note that the daily UPI limit for a Current Account may vary from app to app or bank to bank.
Also read: A step-by-step guide to creating a Current Account UPI ID
Current Account UPI limit for each transaction
Besides the daily transaction limit, banks and UPI apps may impose a limit for each UPI transaction. It refers to the maximum amount you can send or receive in a single UPI transaction. For the first 24 hours post-UPI activation, the Current Account UPI limit for each transaction is ₹ 5000. However, this limit swells to ₹ 1 lakh per transaction after 24 hours.
Also read: Stepwise guide to open current account for sme
Number of UPI transactions allowed in a day
In addition to the monetary limits, banks or UPI apps may also put a cap on the number of UPI transactions you can make in a day (24 hours). Earlier, there was a restriction of 20 transactions per day per bank account. It means that you cannot make more than 20 UPI transactions from your bank account within 24 hours.
However, the NPCI recently eliminated this constraint, granting users the flexibility to make unlimited UPI transactions in a day. The final approval is subject to the service provider bank.
UPI Limits for capital markets
You can also use the UPI facility to invest in the capital markets, pay your loan EMIs, and clear your Credit Card bills. The Current Account UPI limits for such transactions are different than normal UPI transactions. For Mutual Fund investments, Credit Card or loan EMI payments, etc., the UPI transaction limit is ₹ 2 lakhs per transaction. For investments in Initial Public Offerings (IPOs), the UPI limit is up to ₹ 5 lakhs per transaction.
To conclude
The UPI limit for Current Accounts is an important consideration for businesses and entities that rely on frequent digital transactions. By understanding the specific limits and conditions set by banks, you can make informed decisions and leverage the benefits of UPI to streamline your operations. With HDFC Bank’s PayZapp app, you can enjoy enhanced UPI limits and ensure smooth business payments.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
