Investing via UPI: Daily transaction limit to be raised to ₹5 lakh from ₹2 lakh, says Sebi

The daily transaction limit currently stands at 2 lakh. This new limit will also be subject to further evaluations from time to time in consultation with NPCI.

Vimal Chander Joshi
Published3 Feb 2025, 01:20 PM IST
The regulator has added that the proposed implementation of  <span class='webrupee'>₹</span>5 lakh per day is unlikely to entail any major costs
The regulator has added that the proposed implementation of ₹5 lakh per day is unlikely to entail any major costs

Capital markets regulator Securities Exchange Board of India (Sebi) has alluded that the daily transaction limit for capital market transactions is set to be raised to 5 lakh.

The daily transaction limit currently stands at 2 lakh. Notably, this is not a final announcement but a part of the Sebi’s consultation paper on draft circular dated Jan 31, 2025 for safe and efficient transfers on UPI (Unified Payment Interface).

However, this new limit ( 5 lakh) will also be subject to further evaluations from time to time in consultation with NPCI.

Also Read | Avoid budget overload: Tips for tracking UPI credit card transactions

Analysis of transactions

Before coming to any conclusion, Sebi carried out an analysis of transactions made by the clients of top brokers. In the analysis, it was observed that individual transactions below one lakh accounts for 92.9 percent of total transactions whereas transactions between 1 lakh to less than 2 lakh constitute 3.9 percent and transactions between 2-3 lakh constitute 1.3 percent.

For total transactions during the day by an investor, these figures were 91.5, 4.6 and 1.6 percent, respectively.

Category <1 lakh 1-2 lakh  2-3 lakh
One transaction92.9%3.9%1.3%
Transactions in a day91.5%4.6%1.6%

(Source: Sebi)

Based on this analysis, Sebi has now proposed to set the upper limit of upto 5 lakh per day. The regulator has further added that the proposed implementation is unlikely to entail any major costs. The entire process involves four nodes which are NPCI, banks, registered intermediaries and Sebi.

Sebi's consultation paper also mentioned that NPCI has confirmed that issuance of new handles is an ongoing exercise for them. They regularly issue new UPI handles to the new entrants, and therefore, their systems are accordingly designed to accommodate such changes.

Meanwhile, in another news, NPCI released a circular dated Jan 9 which stated that from Feb 1 onwards, the central system will decline all transactions containing special characters. The transaction IDs are supposed to be alphanumeric only but sometimes, they can have special characters too.

Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Business NewsMoneyPersonal FinanceInvesting via UPI: Daily transaction limit to be raised to ₹5 lakh from ₹2 lakh, says Sebi
MoreLess
First Published:3 Feb 2025, 01:20 PM IST

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K

      Fuel Price

      • Petrol
      • Diesel

      Popular in Money