UPI Transaction Charges: Limit Per Day, Guidelines, Rules, and Key Details

The NPCI defines the UPI transaction charges and limits per day to regulate digital payments. Most personal payments via UPI remain free, while the UPI transaction limit per day is generally ₹1 lakh with higher limits for select categories.

Key Highlights:

• UPI transaction charges: No fees for personal transfers; wallet-based merchant transactions above ₹2,000 attract 0.5%–1.1% fees if the payment made from any credit sources.
• UPI transaction limit per day: ₹1 lakh for most banks; up to ₹10 lakh for travel, EMD payments, IPOs, and insurance.
• UPI charges payment: Merchants pay interchange fees for wallet-based PPI transactions, while customers do not.
• UPI rules: 50 daily balance checks, 25 account linking limit, OTP-based verification, auto-display of balances, and restricted auto-debit timings.

UPI Transaction Limit Per Day in 2025

The general UPI transaction limit per day in 2025 is ₹1 lakh, as per guidelines from the National Payments Corporation of India (NPCI).

Recently, NPCI has released a circular increasing the UPI transaction limits for certain categories applicable from 15 September 2025, with an upper limit of ₹10 lakh per day. Here is a detailed overview:

Further, the daily UPI transaction limit can be set individually by each bank within the UPI network and varies from one bank to another. Here are the UPI transaction limits per day of different banks:

UPI Transaction Limit Per Week

The weekly UPI transaction limit is set individually by some banks within the UPI network and varies from one bank to another.

UPI Transaction Limit Per Month

The UPI transaction limit per month has been introduced by a few public sector and private banks, and it differs across banks.

UPI Transaction Charges

There are no extra UPI transaction charges for making payments via UPI. Thus, UPI payments by individuals for personal transactions are free. However, digital wallet transactions above ₹2,000 will be charged. Users do not have to pay this charge, and the merchants have to pay the interchange fee of 0.5%-1.1% .

Surcharge/ Interchange Fee on UPI Payment Through PPI

When UPI transactions are made through PPIs, such as wallets, interchange fees will be imposed. The interchange fee is associated with card payments and is charged to cover the processing, accepting and authorising transactions costs. This fee is similar to the merchant discount rate applicable to credit cards. 

In UPI transactions, the interchange fees are transaction fees the merchant must pay when a customer processes a transaction. Thus, when a customer makes a payment through UPI using a PhonePe QR code at a store, the merchant should pay the interchange fee to the payment service provider, i.e. PhonePe. 

The rate ranges between 0.5% – 1.1%, depending on the service:

• Fuel payments - 0.5%
• Utilities, telecom, education, agriculture, post office - 0.7%
• Supermarkets - 0.9%
• Insurance, mutual funds, railways, government services - 1%

Who Will Pay the Interchange Fees?

The merchant’s bank or wallet provider pays the interchange fee to the payer’s bank for processing the payment.

• Small shopkeepers are mostly unaffected since fees apply only to larger merchant wallet transactions above ₹2,000.
• Medium and large merchants may choose to absorb the cost or pass it to customers indirectly in pricing.
• NPCI requires wallet issuers (e.g., PhonePe, Paytm) will have to pay 0.15% service charge to banks when a wallet is loaded with more than ₹2,000. 

Will Customers Have to Pay Interchange Fee on UPI Payments Made via Wallets?

• Customers will not have to pay the interchange fees for UPI payments made through PPIs for Peer to Peer (P2P) and Peer to Merchant (P2M) transactions. 
• One bank charges the interchange fee to another bank for processing a transaction. In the case of UPI transactions, the merchant bank (the business or person receiving payment) pays the interchange fee to the payer bank (the person making the payment).

P2P transactions mean transferring an amount between two individuals or individual accounts through UPI. P2M is where customers make payments through UPI to merchants for purchases.

What is a Prepaid Payment Instrument (PPI) in UPI?

The Prepaid Payment Instrument (PPI) in UPI means digital wallets that allow a person to store money and make real-time payments online. Wallets, smart cards, preloaded gift cards, vouchers and magnetised chips also come under PPIs.

Payments through PPI are made when a transaction is done via a wallet, like a PhonePe wallet, by scanning a UPI QR code. A few more examples of wallets are the Paytm wallet, SODEXO vouchers, Amazon Pay, Freecharge wallet, etc. 

UPI Operational Guidelines 

The NPCI has introduced updated UPI rules effective from 1 August 2025, across all UPI-enabled apps like Google Pay, PhonePe, Paytm, and BHIM. These changes aim to improve system efficiency and payment security:

• Balance Check Limit: You can check your bank balance for a maximum of 50 times per day per on your UPI app. Exceeding this limit blocks balance checks for 24 hours on that app.
• Auto-Balance Display: After every successful UPI transaction, your account balance will be shown automatically.
• Account Linking Limit: You can link up to 25 bank accounts per day per UPI app (based on mobile number/account fetching).
• Transaction Status Checks: Pending transaction status can now be checked only 3 times per transaction, with a mandatory 90-second gap between each attempt.
• Auto-Debit Processing Time: Auto-debit mandates (e.g., EMIs, SIPs, subscriptions) will be processed only during non-peak hours, i.e., before 10:00 a.m. and after 9:30 p.m.
• Payee Name Display: Before completing a transfer, UPI apps must display the payee’s registered bank name, enhancing transparency and reducing fraud.

Final Word

The UPI transaction limit per day is ₹1 lakh for most banks, with an enhanced limit for special categories of up to ₹10 lakh. Some banks also impose a UPI transaction limit per day to manage high-value transfers. While personal UPI payments remain free, UPI transaction charges apply to wallet-based merchant payments above ₹2,000, payable by merchants and not customers. 

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