UPI or Unified Payment Interface is one of the most popular payment methods today. The technology used by this payment method has made things easy for individuals and businesses to make payments quickly and without hassle. But what exactly is the UPI payment method and what is the UPI transaction limit per day. Questions like these are in so many people’s minds. So without further ado, let us understand UPI from the scratch.
What is UPI?
UPI was developed by the National Payments Corporation of India (NPCI). NCPI is the umbrella organisation working under the directives of RBI and serves the purpose of looking after all the digital transactions in India. UPI was initiated with the aim to create faster transactions without divulging much of the information. Those who use the UPI payment method can send money from their mobile phone. All that this payment method requires is you to link your phone number with the bank account and that is it. The address that you create results in Virtual Payment Address or VPA. The process is simple and hassle-free and is also highly secure for numerous reasons which we will discuss after a while.
What is UPI Transaction Limit Per Day?
As UPI is a payment method that can be easily accessed from a mobile phone, it is not surprising that merchants are easily attracted by it. In that case, they would like to know the UPI transaction limit per day to assess if they can use this payment method for their business purpose. NCPI has set Rs 1 lakh as the UPI transaction limit per day. So, whether you are a merchant or a regular individual who wants to send money to someone, the maximum transaction limit is Rs 1 lakh. But this is not it. There are some exceptions and terms and conditions to the UPI transaction limit per day. Also, the maximum transaction limit depends from bank to bank. For instance, the State Bank of India’s UPI transaction limit per day is Rs 1 lakh whereas for Bank of Baroda it is Rs 50,000
It is important to read about the UPI transaction limit per day of the bank account you use for online payments.
Benefits of Using UPI
There are several advantages of using the UPI payment method. Some of them are as follows:
One of the best advantages of the UPI payment method is that you can make payments instantly. To make or receive payments, all you have to do is get the VPA of the receiver. Then just go to your payment gateway app and enter the VPA there. Select the amount you want to send and make the payment. That is it. There is no hassle in making the payment and that is why UPI has emerged as one of the most popular methods of payment in India today.
Ease of Management
When you have a UPI payment method on your phone, you do not have to download multiple banking applications and switch between them to manage payments. This is one advantage of UPI, that you will not find elsewhere. You can link a different bank account to the same VPA and while making payments decide which bank account you want to go for.
What makes UPI all the more attractive to the people is that it does not charge anything for the service it provides. There are many payment gateways where you can make VPA for free and link bank accounts with it. Merchants can take additional advantage of the payment gateways and the charge for such services is also highly minimal and cost-effective.
Is UPI Safe?
There are several factors that make UPI safer than many other options. They are as follows:
No Personal Details
When you create a VPA, all you have to do is send this address to another person instead of giving other personal information such as bank account number and so on. With the absence of any major detail mentioned in the VPA, hacking the information becomes extremely difficult for the third party.
One Time Password
OTP or One Time Password is sent to the mobile number linked to the VPA. This adds further confirmation that the transaction being made is from the administrator only.
Two Factor Authentication
What some UPI payment gateways do is that they provide a two-factor authentication facility to make security even strong in your mobile device. In this feature, you have to link your UPI account either with your device or phone number. And then there is also the PIN or fingerprint option. These two factors make your account even more secure.
With these security measures implemented in the UPI payment gateways, it is safe to assume that the UPI payment method is highly secure and people can safely use them. It provides both convenience and quick disbursements which are the need of the hour in this digital era. However, knowing about the UPI transaction limit per day is necessary before you opt for the bank to link with the VPA.