UPI New Update 2025 – UPI has completely changed the way we make payments in India. Whether it’s sending money to a friend, buying something online, or paying your electricity bill, everything happens instantly with just a mobile phone. It’s quick, easy, and widely accepted. Now, for 2025, there’s a new UPI update you should know about especially if you often make high-value transactions or use digital wallets.
Let’s break it down in simple terms and cover all the latest details about daily limits, monthly transaction caps, and charges involved.
What’s Changed in UPI This Year?
The National Payments Corporation of India (NPCI), which runs UPI, has announced new rules around how much money users can send using the platform. The default daily limit for regular users remains at Rs 1 lakh. That means you can send up to one lakh rupees in a day using UPI apps like Google Pay, PhonePe, Paytm, and others.
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But here’s where it gets interesting—some exceptions have been added for specific use cases. For example, if you are making payments related to the stock market, insurance, education, or healthcare, the limit can go up to Rs 2 lakh or even Rs 5 lakh in some cases.
UPI Daily and Monthly Limits Bank-Wise
Different banks have their own limits, so not every bank will allow the same maximum daily or monthly UPI usage. Here’s how some of the major banks stack up:
- State Bank of India (SBI): Rs 1 lakh per day
- Punjab National Bank (PNB): Rs 50,000 per day
- Canara Bank: Rs 1 lakh per day
- Union Bank of India: Rs 2 lakh per day
- ICICI Bank (especially for GPay): Rs 10,000 to Rs 25,000 per transaction
- IDFC Bank: Rs 1 lakh per day, and up to Rs 30 lakh monthly
So, if you’re someone who makes high-value transactions often, Union Bank or IDFC Bank might be better options.
Monthly UPI Limits – What You Need to Know
While most users are familiar with the daily transaction cap, fewer people realize that some banks also impose monthly limits. For example, IDFC Bank allows you to send up to Rs 30 lakh per month through UPI. Other banks may not have published specific monthly caps, but it’s a good idea to check with your bank if you regularly transfer large sums.
What Is UPI 123Pay?
If you’ve heard about UPI 123Pay, it’s a version of UPI designed for feature phones (non-smartphones). Under this system, users can make UPI transactions without an internet connection. The transaction cap for UPI 123Pay is Rs 10,000 per transaction, and you can do up to 20 transactions in a day.
No Internet? No Problem
One of the coolest things about UPI is that it doesn’t always require internet access. Services like UPI 123Pay and Aadhaar-linked UPI kiosks can allow users in rural areas or people without smartphones to still make digital payments easily.
What About Charges?
Here’s some good news—if you’re a regular user making payments to friends, family, or even local shops, UPI is completely free. You won’t be charged for personal UPI transactions, no matter how small or large they are.
However, things change slightly when it comes to business transactions made using prepaid payment instruments (like digital wallets). In those cases, there may be interchange fees that work somewhat like credit card charges for merchants. But for regular people using UPI for groceries, bills, or sending money to someone, there are no hidden charges.
Speed and Refunds Are Getting Better
Along with the limit changes, NPCI has also improved the overall experience. UPI transactions are now processed in under 10 seconds, and refunds—especially for failed or canceled payments—are being handled faster too. This is a big relief for users who used to worry about delays or money getting stuck.
Quick Recap: Key Updates You Should Know
- Daily limit remains at Rs 1 lakh for regular users
- Higher limits (up to Rs 2 lakh or Rs 5 lakh) for specific sectors like tax, education, insurance
- Bank-wise limits may vary, so choose your bank accordingly
- No charges for personal UPI transactions
- UPI 123Pay supports users without smartphones
- Speed of payments and refunds has improved in 2025
UPI continues to be India’s most reliable and user-friendly payment system. With the new updates, it’s becoming even more efficient and accessible whether you’re a college student paying fees, a shopkeeper collecting bills, or just someone splitting a dinner bill with friends. Just remember to stay within your daily or monthly limits and enjoy the convenience of digital payments.