UPI New Update – Unified Payments Interface, better known as UPI, has changed the way people in India handle digital payments. It’s fast, simple, and doesn’t require you to remember account numbers or IFSC codes. Over the years, UPI has become the top choice for sending and receiving money digitally. In 2025, a few new changes have been introduced that users should be aware of, especially around transaction limits and certain fees that may apply in specific cases.
What’s New in UPI for 2025?
UPI continues to allow users to make instant payments using their mobile phones. It works for both personal and business transactions and supports direct bank-to-bank transfers. However, the National Payments Corporation of India (NPCI), which oversees UPI, has now introduced new transaction limits depending on the type of transaction and the sector it falls under.
The standard daily limit for regular UPI transactions is still set at one lakh rupees. This applies to everyday transfers like sending money to friends, paying for groceries, or paying bills online. But if you’re making payments in certain areas like capital markets, insurance, or foreign inward remittances, the limit is now higher — up to two lakh rupees per day.
For very specific cases, such as paying education fees, taxes, IPO applications, or healthcare services, the daily limit has been raised even further to five lakh rupees. These exceptions have been made to support larger, important payments where higher limits are necessary.
Bank-wise UPI Limits You Should Know
While the general UPI limit is one lakh rupees per day, different banks have their own set rules. Here’s a quick look at some of the limits set by popular Indian banks:
- State Bank of India (SBI): Allows up to one lakh rupees per day.
- Punjab National Bank (PNB): Offers a lower daily limit of fifty thousand rupees.
- Canara Bank: Has a one lakh rupee daily limit.
- Union Bank of India: Allows up to two lakh rupees per day.
- IDFC FIRST Bank: Also supports a daily limit of one lakh rupees.
- ICICI Bank: Limits vary from ten thousand to twenty-five thousand rupees per day for users of third-party apps like Google Pay.
- Axis Bank and Kotak Mahindra Bank: Both follow the one lakh rupee daily limit.
Some banks also set monthly caps. For example, IDFC FIRST Bank has a monthly UPI limit of thirty lakh rupees. This means even if you’re using UPI every day, there’s a total monthly ceiling to watch out for.
UPI 123Pay and Digital Wallet Payments
For users using UPI through voice-based services or feature phones under the UPI 123Pay service, each transaction is capped at ten thousand rupees. You can make a maximum of twenty transactions a day under this system.
Also, when you make UPI payments through digital wallets or Prepaid Payment Instruments (PPIs), there might be some fees involved. These fees are similar to charges you’d see when using a credit or debit card — they help cover processing and transaction handling costs. However, this only applies to PPI-linked UPI payments and not regular bank account transfers.
Are There Any Charges on UPI Transactions?
For most users, UPI remains completely free. Whether you’re splitting a restaurant bill with friends, paying your electricity bill, or sending a gift to someone, personal UPI transactions do not have any charges. That includes both peer-to-peer payments (from one person to another) and peer-to-merchant payments (from a person to a store or business).
It’s important to note, though, that while you don’t pay any fee as a customer, merchants might incur a small fee on UPI transactions made through wallets or cards. But this doesn’t affect your transaction directly.
Faster Payments and Refunds
The NPCI is also focusing on improving the speed of payments and refunds. From 2025 onward, most UPI payments are expected to be completed in under ten seconds. Also, if a transaction fails, refunds will be processed much faster than before, helping users avoid long waits.
- Standard daily UPI limit is one lakh rupees, but higher limits apply for education, healthcare, and certain financial sectors.
- Bank-specific limits vary — always check with your bank for the latest.
- Monthly limits exist with some banks.
- Personal UPI transactions are free of charge.
- Wallet-based UPI payments may include processing fees.
- Faster transaction speed and refund times are a major improvement in 2025.
UPI continues to evolve, making digital transactions in India even more convenient and reliable. Just stay informed about your bank’s limits and transaction rules to make the most out of it.
