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UPI Transaction Limit: Nowadays people use UPI for everything from small payments to large transactions. But it often happens that you are not able to transfer as much money as your friend. Have you ever wondered why everyone has different transaction limits despite using UPI? There is not just one but many reasons behind this. Let us understand this confusion in simple words. What is the main rule of UPI limit? First of all, it is important to know that the National Payments Corporation of India (NPCI), the organization that manages the UPI system in India, has set a maximum limit of Rs 1 lakh at a time. However, this is an upper limit. This does not mean that everyone can send Rs 1 lakh. Banks and apps can increase or decrease this limit as per their policy. Why is there a difference between your limit and someone else’s limit? Following are the reasons behind your UPI limit being lower or higher than other users:1. Bank’s own policy: Every bank has different risk management policies. To protect customers from online fraud and scams, some banks deliberately keep their transaction limits low. For example, SBI allows its customers a daily transaction limit of up to Rs 1,00,000, while a small or co-operative bank may keep this limit as low as Rs 25,000.2. Difference between new and old usersIf you are new to UPI, your limit may be limited to Rs 5,000 for the first 24 hours due to security reasons. This rule is to ensure that your account is not incorrectly activated by a fraudster. After completion of 24 hours, your limit will automatically increase. This rule does not apply to existing users.3. Type of TransactionThis limit also depends on who you are sending the money to. Typically, the limit for paying a merchant or merchant may be higher than the limit for sending money from one person to another. The limits for receiving and sending money are higher for users with business UPI accounts.4. More relaxations for specific categoriesNPCI has relaxed the UPI limits for certain areas. If you are paying hospital bills or fees of any educational institution, you can transact up to Rs 5,00,000 in a single transaction.5. Which app do you use? Apps like Google Pay, PhonePe and Paytm may also set their own transaction limits, which may be lower than your bank’s limit. For example, your bank may have a limit of Rs 1,00,000, but a particular app may allow you to do only 10 transactions in a day or send only Rs 50,000 in total. In short, your UPI limit does not depend on just one factor but on multiple factors like NPCI, your bank, the app you are using and your account history. So, if your limit is lower than your friend’s limit, there is nothing to worry about as this is a normal process.