UPI, UPI Lite, UPI 123PAY, UPI LITE X: Transaction Limits Explained

1️. What is UPI?
Unified Payments Interface (UPI) integrates multiple bank accounts into one app, allowing seamless fund transfers, merchant payments, and P2P requests. Available 24/7, it has transformed digital transactions in India.

2️. How to Pay an Online Merchant via UPI
When shopping online, choose UPI as the payment option. Enter your UPI ID (e.g., xyz@upi), and you’ll receive a collect request. Confirm it using your UPI-PIN, and the payment will be processed instantly.

3️. Are UPI Payments Limited to Banking Hours?
No, UPI payments are available 24/7. You can send or receive money at any time, regardless of banking hours.

4️. Difference Between UPI & IMPS
UPI offers extra features over IMPS, such as:

  • P2P pull functionality
  • Simplified merchant payments
  • Single app for all money transfers
  • Single-click two-factor authentication

5️. UPI Transaction Limit
For most transactions, the limit is ₹1 lakh per transaction.

  • For Capital Markets, Collections, Insurance, and Foreign Inward Remittances, it’s ₹2 lakh.
  • For IPO and Retail Direct Scheme, the limit is ₹5 lakh per transaction.

6️. UPI Lite Transaction Limit
UPI Lite is for small-value transactions under ₹500.

  • The RBI recently increased the limit to ₹1,000 per transaction.

7️. UPI Lite X Transaction Limit
Launched in September 2023, UPI Lite X supports offline payments without internet connectivity.

  • Per transaction limit: ₹500
  • Cumulative daily limit: ₹4,000
  • Maximum balance in UPI Lite X: ₹2,000
  • Minimum top-up: ₹1

8️. UPI 123PAY Transaction Limit
Designed for feature phones, UPI 123PAY offers IVR, app, missed call, and proximity sound-based payment methods.

  • Per transaction limit: ₹5,000
  • Daily limit: ₹1 lakh