Now that you know the limit of UPI transactions, you might wish to know how this method has gained popularity. Currently, it is the most commonly used mode of digital payment.
Here are the reasons which make it beneficial.
- Free Fund Transfer: UPI is often preferable for most people because it is completely free. Visa and MasterCard charge 1%-2% of the overall payment amount, while NEFT and IMPS can also charge money if the amount is small. It is not an issue with UPI. No matter how small the amount is, you can transfer it without paying additional charges.
- Privacy and Security: When it comes to digital payments and transactions, UPI is the most trusted and secured mode. It helps you keep your financial details private, such as your bank account number, IFSC code or ATM number. You can simply share your virtual UPI ID to send or receive money on your account.
- Timely Transfer: Another advantage of UPI is its ability to deliver timely transfers. As it is based on the IMPS platform, it works 24x7. It helps you transfer funds instantly the moment you submit your request. Naturally, this is much more effective than NEFT, as it usually requires at least 2-3 hours to transfer funds.
- Multiple Accounts Linking: UPI apps allow you to link over one bank account. You can simultaneously use the UPI IDs for multiple bank accounts, sending and receiving funds. This makes it easier for you to manage your bank accounts on a single platform.
- Simple Interface: There are multiple smartphone apps for UPI activities. This makes it easier for you to start your UPI transactions immediately. Moreover, these apps come with a simple and user-friendly interface, allowing you to get accustomed to digital payments in a short time.
Thus, as this article pointed out, knowing the limit on UPI transactions is essential. It helps you to plan your payments and transactions accordingly. While RBI is trying to standardise the limits, banks and financial institutes currently have different limits. You need to know your bank's and UPI app's limits before making large transactions.