UPI payments feel unlimited because of how seamless they are, but in reality every user operates under a UPI transaction limit per day. Most people only discover this limit when a payment fails at the worst possible time—during a tax payment, IPO application, or large bill settlement. In 2026, understanding where the ₹1 lakh cap applies and where higher limits are allowed is essential for stress-free payments.
The confusion usually comes from mixed assumptions. Many users believe limits apply per app, per transaction, or can be bypassed by splitting payments. None of that is true. The limit applies per bank account per day, regardless of how many UPI apps you use.
Standard UPI Transaction Limit Explained
For everyday users, the standard UPI limit remains unchanged and applies across all common use cases such as peer-to-peer transfers and merchant payments.
| Limit Type | Amount |
|---|---|
| Per Transaction Limit | ₹1,00,000 |
| Daily Aggregate Limit | ₹1,00,000 |
| Applies Across Apps | Yes |
| Reset Time | Automatically next day |
Once the daily cap is exhausted, no further UPI payments are allowed until the limit resets.
Where the ₹5 Lakh UPI Limit Applies
The ₹5 lakh limit is not a general upgrade. It applies only to specific, regulated categories where higher digital payments are officially permitted.
| Category | Maximum Allowed |
|---|---|
| Income Tax Payments | Up to ₹5,00,000 |
| IPO Applications | Up to ₹5,00,000 |
| Education Fees | Up to ₹5,00,000 (approved institutions) |
| Hospital Payments | Up to ₹5,00,000 (verified hospitals) |
If the merchant or platform is not correctly classified, the higher limit will not activate.
Why Payments Fail Even Below ₹1 Lakh
A common misunderstanding is that a single ₹50,000 payment should always go through. If earlier transactions have already consumed part of the daily cap, the remaining balance may be insufficient for the new payment.
Another frequent issue is category mismatch. Even legitimate high-value payments fail when routed through merchants not mapped under eligible categories.
Can You Bypass the UPI Daily Limit
The short answer is no. Splitting payments across multiple UPI apps does not help, because all apps draw from the same bank-level limit. Using multiple bank accounts is the only way limits differ, but that comes with separate KYC and management overhead.
Banks do not allow manual increases beyond approved categories.
How Merchants Impact Your Limit
Merchants play a crucial role in enabling higher limits. If a merchant has not completed proper category verification, users will be restricted to the standard ₹1 lakh limit, even for valid use cases.
This is why some education or hospital payments unexpectedly fail despite qualifying for higher limits.
Smart Payment Planning Tips
For large payments, it’s best to check eligibility and timing before initiating the transaction. Making high-value payments early in the day reduces the risk of hitting aggregate caps.
Users should also avoid unnecessary small transactions on days when large payments are planned.
What Has Not Changed
UPI remains free for users, and there are no additional charges for high-value payments under eligible categories. Authentication steps and security protocols remain the same, regardless of transaction amount.
Understanding what hasn’t changed prevents unnecessary hesitation in using UPI.
Conclusion
The UPI transaction limit per day is simple once understood, but costly when ignored. The standard ₹1 lakh cap applies to most payments, while ₹5 lakh limits are strictly reserved for specific categories. Users who plan payments with these rules in mind enjoy seamless transactions, while those who don’t often face avoidable payment failures.
FAQs
What is the standard UPI daily limit?
The standard limit is ₹1,00,000 per day per bank account.
Does the ₹5 lakh limit apply to all users?
No, it applies only to approved categories like tax, IPO, education, and hospitals.
Can I split payments to bypass the limit?
No, aggregate daily limits still apply.
Do limits reset automatically?
Yes, limits reset at the start of the next day.
Is there any fee for high-value UPI payments?
No, UPI remains free for users.
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