UPI transaction limit: Anupam Mittal, Shark Tank judge and CEO of People Group, has raised a complaint against the Unified Payments Interface (UPI) transaction limits on the State Bank of India platform.
In a post on X, which was named Twitter before this, Mittal noted that many merchants have been facing UPI limit errors for SBI-linked UPI payments. He said since July 20, 2024, merchants have been riddled by ‘You have reached the UPI limit set by your bank’ errors.
Highlighting the SBI case, he said the problem is only with the SBI and not happening with other banks. He noted that the largest lender in the country is not ready to accept the problem, leave alone tackle it.
"Congrats @UPI_NPCI for continuing to redefine digital payments. Much needed innovation 🙌🏼 Would also help if we can hold banks to performance. Since July 20th merchants are seeing errors like ‘uve reached the upi limit set by ur bank’ for @TheOfficialSBI UPI. Not happening with other banks. Nobody @TheOfficialSBI to accept the problem, leave alone tackle it. Not only does this shake confidence in UPI, affects 🇮🇳 growth directly given the volume of txns & SBI share @RBI," Mittal wrote on X on August 16.
The daily maximum limit for Unified Payments Interface (UPI) transactions for an individual stands at Rs 1 lakh. It is important to note that the recent declaration is exclusively pertinent to tax payments conducted through UPI.
Subject to the regulations set by the National Payments Corporation of India (NPCI), a maximum of 20 UPI transactions are permitted within a single day per UPI account. Should a user surpass this threshold, a waiting period of 24 hours is imposed before initiating a new UPI payment.
The RBI revised the transaction limits for some services:
> Tax payments The limit for tax payments has been increased from Rs 1 lakh to Rs 5 lakh per transaction. > Merchant transactions For merchant transactions like insurance, capital markets, and foreign inward remittances, the limit is Rs 2 lakh per transaction. > IPO subscriptions and RBI Retail Direct Scheme The limit is Rs 5 lakh per transaction when scheduling an IPO or using the RBI Retail Direct Scheme to make payments.
Earlier this month, the central bank introduced 'Delegated Payments facility for Unified Payments Interface (UPI)', which was mentioned in Mittal's post, which will allow a primary user to grant authorisation to another individual to make UPI payments from the primary user's bank account, within a specified limit.
The Unified Payments Interface (UPI) Circle-Delegate Payments feature is a solution that facilitates the utilization of a single bank account by two individuals to conduct UPI transactions. This functionality serves as a practical tool for family settings wherein there is only one member possessing a bank account, as well as in scenarios where multiple family members collectively utilize a shared bank account. The system guarantees that the principal user maintains authority over transaction thresholds and supervision, thus enriching user experience by combining convenience with robust security measures.