UPI Limit Increase: PhonePe, Google Pay, and Paytm Payment Limits May Rise; Here's How to Adjust Settings

UPI Limit Increase: In this era of technology, mobile phones have become the new wallet. Whether we need to buy vegetables, refuel petrol, or pay online EMIs, all these tasks are done in minutes with UPI. But have you ever noticed that while ₹1 lakh can be transferred from a friend's app, your payment fails if it exceeds ₹25,000 on your phone? In reality, this is not an issue with apps like Google Pay, PhonePe, or Paytm. Banks decide this. Let's understand how the entire system works and how you can increase your limit.

Banks Determine Your Transaction Limit

Most users believe that the UPI limit can be increased within the app, but the reality is that the app merely follows the limit set by the bank. Each bank sets daily and per-transaction limits based on its risk policy, customer profile, and RBI guidelines.

Therefore, if your bank's limit is ₹25,000, no app, be it Google Pay or Paytm, will be able to transfer more than that amount. On the other hand, a customer of another bank can send up to ₹1 lakh at once.

How to Know Your UPI Limit?

Apps often do not explain why the limit is low, only showing how much you can send in a day. If you want to know your limit, open the 'Fund Transfer' or 'UPI Settings' section in your bank's app. There you will find 'Transaction Limit'. If the bank has permitted ₹1 lakh, all your UPI apps will also show the same limit. If the bank has imposed a cap of ₹25,000, the apps cannot override it.

How to Refresh Your Limit?

Apps like Google Pay and PhonePe show 'View UPI Limit'. If your limit has been reduced recently due to security reasons, you can 'Refresh Limit' from the app. Security reasons can include entering the wrong PIN multiple times or adding a new mobile number.

When refreshing the limit, the system will ask you to enter your UPI PIN again. This is a type of security check to confirm your identity.

Similarly, in Paytm, this information is displayed on the 'Bank Account Details' page. It explains why your limit has been reduced and when you can increase it again.

Why Don't Banks Increase Limits Immediately?

Every bank sets limits based on the customer's usage patterns and security. If you have recently changed your mobile or SIM, or have entered the wrong UPI PIN multiple times, the bank may reduce your limit for a period for security reasons.

Sometimes, for security reasons, banks implement a 'cooling-off period'. This means that after adding a new beneficiary or changing a device, large transactions cannot be made for a few hours or days.

How to Increase UPI Limit in Bank App

Some banks offer customers the option to edit their limits within their own app. Navigate to the 'Manage UPI Limits' or 'Fund Transfer Settings' section. Here you will find the option to change the limit. If the bank permits, after increasing the limit, all your UPI apps will automatically update within a few minutes.

If this option is not visible in the app, it means your bank has set the limit as per its policy, and you cannot change it yourself.

What to Do If UPI Payments Keep Failing

If payments of large amounts are repeatedly failing, do not worry. During festivals or times of high traffic, banks may temporarily reduce limits for security. In such cases, instead of retrying UPI, use Net Banking, IMPS, or RTGS for payments. These methods are more reliable and faster for large transactions.