UPI Transaction Limits Starting From April 2026

Based on current information, while the Reserve Bank of India (RBI) and NPCI have held discussions regarding broader updates to the UPI ecosystem in 2026, no official, uniform transaction limit has been set to take effect from April 2026.  

At present, UPI limits consist of the standard ₹1 lakh per-day cap applicable to most users, along with higher limits for specific categories, and individual banks may impose their own internal rules. Additionally, a key change scheduled for April 2026 involves the introduction of new fees for UPI-based ATM withdrawals at one of India’s largest public sector banks. 

An overview of the major updates to UPI, including transaction limits and new rules, reported to be relevant for the year 2026. 

UPI Transaction Limits: ₹1 Lakh Standard and ₹5 Lakh Exceptions 

The standard UPI transaction limit for most users remains capped at ₹1 lakh per day . However, a higher limit of ₹5 lakh per day is permitted for payments to specific categories of verified merchants. This includes payments for: 

• Medical and Education: Payments to hospitals and educational institutions. 
• Financial Services: Insurance premiums, credit card bill payments and IPO applications. 
• Government: Tax payments and subscriptions to the RBI's retail direct schemes. 
• Travel: Booking travel tickets and holiday packages. 

It is important to note that these are the maximum limits set by NPCI. Individual banks may impose lower internal limits, which users can typically view and, in some cases, modify within their banking app or by contacting the bank directly. 

Limits for New UPI Users 

For individuals who are new to UPI or have registered on a new app, a temporary restriction is in place to help prevent fraud. During the first 24 hours after registration, the total transaction limit is capped at ₹5,000 , regardless of the standard limit set by the user's bank. 

New Charges on UPI ATM Withdrawals (Effective April 1, 2026) 

A significant update arriving on April 1, 2026, affects UPI-based cardless cash withdrawals at ATMs specifically for HDFC Bank customers. From this date, HDFC Bank will include UPI cash withdrawals as part of the monthly free ATM transaction limit. 

How it works: Previously, UPI withdrawals were often treated separately. Now, any cash withdrawal made through a UPI app at an ATM will count toward the same monthly limit as regular debit card transactions. 

The free limits: For standard HDFC Bank savings and salary accounts, the monthly free transaction limits are: 

• At HDFC Bank ATMs: 5 free transactions 
• At other bank ATMs (metro cities): 3 free transactions 
• At other bank ATMs (non-metro cities): 5 free transactions 

The charge: Once these free limits are exceeded, a fee of ₹23+ applicable taxes will be levied for each UPI cash withdrawal transaction. 

While this change has been officially announced by HDFC Bank, it may signal a broader industry trend. It is advisable to check with your own bank regarding their specific policy on UPI ATM withdrawals. 

New Security Rules from April 2026 

Beyond transaction limits, a significant security update from the RBI is set to take effect in April 2026. The new authentication rules will require more robust two factor authentication (2FA) for digital payments. As a result, certain transactions may involve additional security steps, including: 

Dynamic Authentication: One of the two authentication factors must be dynamic and uniquely generated for each transaction. 

Biometrics: Greater reliance on fingerprint or facial recognition (inherent factor) to verify the user's identity.