The Unified Payments Interface (UPI) continues to evolve as India’s leading digital transaction platform. In 2025, the National Payments Corporation of India (NPCI) has announced new updates regarding transaction limits, sector-specific exceptions, and charges. These changes are intended to enhance efficiency, broaden access, and ensure smoother digital payment experiences across different sectors.
What’s New in UPI 2025?
- Standard Daily UPI Limit:
The base daily limit remains ₹1 lakh for standard peer-to-peer and merchant transactions. - Sector-Specific Exceptions:
- ₹2 lakh daily limit for transactions involving capital markets, insurance, collections, and foreign inward remittances.
- ₹5 lakh limit for educational fees, hospital payments, tax payments, IPO applications, and RBI Retail Direct Scheme payments.
- UPI 123Pay:
This voice-based UPI system has a transaction limit of ₹10,000 and allows up to 20 transactions per day.
Faster Payments and Quicker Refunds
According to NPCI, the updated framework will speed up UPI transactions (now under 10 seconds) and ensure quicker refund settlements. The system also introduces Transaction Credit Confirmation (TCC) for instant chargeback approvals or rejections.
Bank-Wise UPI Daily & Monthly Limits (2025)
| Bank Name | Daily Limit | Monthly Limit |
|---|---|---|
| Union Bank of India | ₹2,00,000 | ₹2,00,000 |
| State Bank of India | ₹1,00,000 | ₹1,00,000 |
| Canara Bank | ₹1,00,000 | ₹1,00,000 |
| Axis Bank | ₹1,00,000 | ₹1,00,000 |
| Kotak Mahindra Bank | ₹1,00,000 | ₹1,00,000 |
| IDFC First Bank | ₹1,00,000 | ₹30,00,000 |
| Punjab National Bank | ₹50,000 | ₹50,000 |
| Central Bank of India | ₹1,00,000 | ₹1,00,000 |
| Bank of India | ₹1,00,000 | ₹1,00,000 |
Note: ICICI Bank allows ₹10,000–₹25,000 per day for GPay users.
Are There Any UPI Charges?
- Personal UPI Transactions:
No charges apply for standard UPI usage such as sending money, paying bills, or shopping, regardless of the amount. - PPI-Based UPI Payments (e.g., Wallets):
Interchange fees may apply when UPI is used via Prepaid Payment Instruments like digital wallets, particularly in business or merchant transactions. This mirrors the Merchant Discount Rate (MDR) used in card payments.
Peer-to-Peer vs. Peer-to-Merchant
- Peer-to-Peer (P2P):
Direct transfers between individuals using UPI remain free and instantaneous. - Peer-to-Merchant (P2M):
These are direct bank-to-business transactions, typically used by customers paying vendors, with no fee for the end user but possible interchange fees for merchants.
FAQs on UPI New Transaction Rules (2025)
Q: What is the new standard daily UPI limit in 2025?
A: ₹1 lakh per day, with higher limits for select categories.
Q: Are there UPI transaction limits based on the app (like GPay)?
A: Yes, some banks (e.g., ICICI) have set specific lower limits for third-party apps.
Q: Can I be charged for using UPI?
A: Only wallet-based UPI transactions may incur fees. Personal transfers remain free.
Q: How many UPI transactions are allowed daily?
A: A maximum of 20 transactions per day, especially for services like UPI 123Pay.
Conclusion:
As digital payments continue to shape India’s financial landscape, the UPI 2025 updates are geared towards enhancing security, speed, and sector-based flexibility. With new exceptions and streamlined processes, users and businesses alike stand to benefit from a more robust digital infrastructure.
