UPI Limit Exceeded? How to Transfer Money Between Banks

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It was 9:40 on a Sunday night, and Ankit needed to transfer money to a landlord. Fast.

Ankit had finally found a flat in Pune. Good area, fair rent, and a landlord who said, “Send the ₹2.5 lakh deposit tonight, or I’m giving it to the next family tomorrow morning.”

So Ankit opened his UPI app, typed ₹2,50,000, and hit send.

“Transaction limit exceeded.”

He tried ₹1 lakh. It went through. He tried another ₹1 lakh.

“Daily limit reached.”

It was Sunday. The bank was shut. And the landlord was already typing “?” on WhatsApp.

Did Ankit lose the flat? Hold on to that question. I’ll tell you how it ended in a bit, because the way he fixed it is exactly what most people don’t know.

First, let’s get your questions answered. If you’ve ever wondered how to transfer money between banks the right way, without getting stuck like Ankit, this is for you.

So what are the ways to transfer money between banks in India?

There are four. That’s it. UPI and IMPS are run by NPCI, and NEFT and RTGS by the Reserve Bank of India.

• UPI: the one inside GPay, PhonePe, Paytm and your bank app.
• IMPS: instant transfer using account number and IFSC.
• NEFT: the regular bank transfer. Works in half-hourly batches.
• RTGS: for big amounts, ₹2 lakh and above.

The real question isn’t “what are they?”

It’s “which one should I use, and when?” Because picking the wrong one is exactly how people end up stuck on a Sunday night.

What is the UPI limit for sending money?

Short answer: ₹1 lakh per transaction when you’re sending to a person.

Most banks also cap it at around ₹1 lakh a day. Some keep it lower. So check your bank app once.

There is a higher limit, up to ₹5 lakh, but only for certain payments to verified merchants. Things like income tax, hospital bills, school or college fees, IPO applications and some insurance payments.

Sending money to your landlord or your brother? The UPI limit is still ₹1 lakh.

Now you know why Ankit’s ₹2.5 lakh failed. He hit the UPI limit.

Wait, why did UPI let me send only ₹5,000 on my new phone?

Because that’s a safety rule, not a bug.

When you set up UPI for the first time, or move it to a new phone, many apps allow only a small amount (often ₹5,000) for the first 24 hours.

Why? If a scammer gets your SIM or phone, this stops them from emptying your account in one go.

Does UPI cost anything?

No.

When you transfer money through UPI from your bank account, it’s free. No charge for normal person-to-person payments.

And if you pay for a lot of tiny things like chai and auto fares, there’s UPI Lite. It’s a small wallet inside your UPI app. You can pay up to ₹1,000 at a time without a PIN and keep up to ₹5,000 in it. Bonus: those ₹20 entries stop cluttering your bank passbook.

What if I need to send more than ₹1 lakh right now?

This is where most people get stuck. And it’s exactly where Ankit got stuck.

The answer is IMPS.

IMPS is instant, just like UPI. It works 24×7, even on Sundays and holidays. But the limit is much higher: up to ₹5 lakh per transaction.

The difference is how you send it. Instead of a UPI ID, you use the other person’s account number and IFSC in your bank app or net banking.

Is it free? At many banks, yes. Some charge a few rupees plus GST, a little more for bigger amounts. Check your bank’s charges page once and you’ll know.

So what happened to Ankit?

He called his elder sister. She told him to stop using the UPI button and go to “Fund transfer” in the same bank app. He added the landlord as a payee, waited for the OTP, picked IMPS, and sent the remaining ₹1.5 lakh.

It reached in under a minute.

He got the flat. The landlord even sent a thumbs-up.

The fix was in his own app all along. He just didn’t know the button existed.

Does NEFT really work on Sundays now?

Yes. Since December 2019.

A lot of us still hear our parents say “do the transfer before 4 pm”. That used to be true. Not anymore. NEFT works 24×7, all 365 days, including bank holidays.

Here’s how it works. NEFT doesn’t send your money one by one. It collects transfers and settles them in batches every half hour. That’s 48 batches a day.

In real life, the money usually reaches within minutes to an hour or two.

Is there any limit on NEFT?

RBI hasn’t set a minimum or a maximum. You can send ₹1 or ₹10 lakh.

But your bank will have its own limit for online transfers. Most apps let you raise it in settings.

And the best part? Online NEFT from a savings account is free. RBI told banks to stop charging for it back in January 2020. Only a branch NEFT, with a paper form, may have a small fee.

If something goes wrong (say, a wrong account number), the money comes back to you, usually within a couple of hours.

When should you use NEFT? When you need to transfer money but it’s not urgent to the minute. Rent, school fees, a CA’s bill, moving savings to another bank.

Then what is RTGS for?

Big money.

RTGS starts at ₹2 lakh. There’s no upper limit from RBI, though your bank will set one for online transfers.

Each RTGS transfer is settled on its own, in real time. So the money moves almost immediately. It’s also been 24×7 since December 2020.

Online RTGS is free at most banks too. RBI dropped its own charges in 2019 and asked banks to pass that on.

Think property booking amount. A car down payment. A big FD maturity moving to another bank.

UPI, IMPS, NEFT or RTGS: which one should I actually use?

Here’s the cheat sheet. Save it.

• Under ₹1 lakh, need it now? UPI.
• ₹1 lakh to ₹5 lakh, need it now? IMPS.
• Any amount, not urgent? NEFT.
• ₹2 lakh or more, big payment? RTGS.

Need it there in five minutes? IMPS or RTGS. Tomorrow morning is fine? NEFT works perfectly.

How do I transfer money step by step?

With UPI

1. Open your UPI app and tap “Send money” or “Pay”.
2. Enter a phone number or UPI ID, or scan the QR. You can also choose “To bank account” and type the account number and IFSC.
3. Read the name that pops up. That’s the real account holder’s name. If it’s not who you expected, stop.
4. Type the amount, add a note like “rent Oct”, and enter your PIN.
5. Save the reference number (UTR). You’ll need it if anything goes wrong.

With IMPS, NEFT or RTGS

1. Open your bank app or net banking. Go to “Fund transfer”.
2. Add the person as a payee: name, account number, IFSC. Type the account number twice, carefully.
3. Confirm with the OTP.
4. If your bank makes you wait after adding a payee, wait. Many banks have a short cooling period (30 minutes to a few hours) and a lower limit for the first 24 hours.
5. Pick IMPS, NEFT or RTGS, enter the amount, confirm.
6. Save the reference number.

Here’s something good that changed recently.

Since April 2025, RBI has asked banks to show you the account holder’s name before you confirm an NEFT or RTGS transfer. Just like UPI does.

So when that name appears, don’t skip it. Read it. It’s your last chance to catch a wrong digit. And if it ever happens the other way round, here’s what to do when a stranger sends money by mistake.

What about moving money between my own accounts?

Same bank? That’s the easiest one.

Savings to FD, or one account to another in the same bank, is an internal transfer. Instant and free. No UPI or NEFT needed.

Will I be charged when I transfer money?

• UPI: free.
• NEFT online: free for savings accounts.
• RTGS online: free at most banks.
• IMPS: free at many banks, a few rupees plus GST at some.
• At the branch: NEFT and RTGS may have a small fee.

Every bank sets its own IMPS and branch fees, and they do change. So search “[your bank name] IMPS charges” once and check the bank’s own website.

What should I check before I hit “Send”?

Most bank transfer problems aren’t technical at all. They’re a wrong digit, a fake call, or a rushed thumb.

Ten seconds of checking before you transfer money saves hours of stress.

• Read the name the bank shows you. Not the one you typed.
• Check the IFSC. It’s 11 characters, and the fifth one is always zero.
• Sending a big amount to someone new? Send ₹1 first. Feels silly. Do it anyway.
• Got a call saying “your account will be blocked, transfer money now”? Hang up. Banks don’t work like that.
• Remember this: you enter your UPI PIN only to send money. Never to receive it. “Enter PIN to get your refund” is always a scam.
• Keep the reference number. Every time.

Want to go deeper on scams? Read my guide on how to keep your money safe from UPI and online fraud.

Money got debited but never reached. What now?

First, breathe. And don’t send it again yet.

Most of these fix themselves.

For UPI and IMPS, RBI’s rule is clear. If your account is debited but the other person doesn’t get the money, it must come back to you automatically by the next working day.

And if the bank takes longer? It has to pay you ₹100 for every day of delay. You don’t have to beg. It’s a rule.

For NEFT, failed money usually comes back within a couple of hours. If the bank delays it, RBI rules say it owes you interest.

Still not back after the deadline? Open that transaction in your app, tap “Help” or “Raise dispute”, and give the reference number.

I sent money to the wrong account. Can I get it back?

Honest answer: maybe. It’s not automatic.

If the account number was valid and the money reached someone else, your bank can’t just pull it back. The person who received it has to agree.

Here’s what to do, fast:

1. Call your bank right away with the reference number. Also complain in writing (email or app), so there’s a record.
2. Your bank contacts the other bank. That bank contacts the person and asks them to return it.
3. If they refuse, ask your bank about next steps. A police complaint may be needed.
4. No reply from your bank in 30 days? Or not happy with it? Complain to the RBI Ombudsman at cms.rbi.org.in. It’s free.

For UPI, the “Raise dispute” button on that transaction is usually the quickest first step.

What if someone cheated me out of money?

Then every minute counts.

• Call 1930, the national cyber fraud helpline. Or report at cybercrime.gov.in.
• Tell your bank and block your cards and UPI from the app or customer care.
• Report within 3 working days. Under RBI rules, if the fraud wasn’t your fault and you report it within three working days, your loss can be zero. Wait longer and it gets harder.

Is UPI less safe than net banking?

No. UPI itself is safe.

What’s unsafe is sharing your PIN or OTP, or approving a request you didn’t start. Those same tricks work on net banking too.

Do I pay tax if I transfer money to my family?

Moving money between your own accounts? No tax.

Giving money to close relatives like parents, spouse, siblings or children? Tax-free for them under the Income Tax rules.

Gifts from people who aren’t relatives, above ₹50,000 in a year, can be taxable. I’ve explained this in my Diwali gifts and tax guide.

Can I transfer money from my credit card to my bank account?

You can try. But it usually costs you.

Many banks treat it like a cash withdrawal. That means a fee, plus interest from day one. No interest-free period.

If you’re thinking of it to cover a short gap, read how to use a credit card without paying interest first.

Want to pay at shops by scanning a UPI QR with a credit card? That works only with RuPay credit cards. The HDFC RuPay credit card is one option that links to UPI apps. Just pay the full bill every month.

Do people still use cheques?

Sometimes. For a security deposit, a government form, or an old-school landlord.

And they’ve become faster. In October 2025, RBI started moving cheque clearing to a continuous system. So many cheques now clear the same day, within a few hours.

For big cheques, your bank may ask you to use “Positive Pay”. You confirm the cheque details in your app first, so nobody can change the amount or the name.

Can ChatGPT or AI help me transfer money safely?

Yes, for the thinking part. Never for the sending part.

You can ask ChatGPT or Gemini something like: “I need to send ₹3 lakh to my landlord tonight. Should I use UPI, IMPS, NEFT or RTGS?” It’ll explain the options in plain words, just like this guide.

But never type your UPI PIN, OTP, card number or full account details into any AI chat. It doesn’t need them. Nobody does.

And here’s the scary new part. Scammers now use AI to copy voices. My friend’s mother got a call that sounded exactly like her son: “Mummy, I’m in trouble, send ₹40,000 now.” It wasn’t him.

So if a “family member” calls in a panic asking you to transfer money, hang up and call them back on their saved number. You can also report such calls on Sanchar Saathi (Chakshu).

Curious how AI can actually help with money? Here’s how I use it for budget planning with AI, without sharing anything private.

Is my money safe in the bank I’m moving it to?

Mostly, yes. Your deposits in each bank are insured by DICGC up to ₹5 lakh per person, per bank, if the bank ever fails.

Have more than that? Spreading it across two banks is a simple way to stay inside the cover. It’s also a good home for your emergency fund.

Can I use UPI or NEFT to send money abroad?

No. UPI, IMPS, NEFT and RTGS only move money inside India.

To send money abroad, or to get money from family overseas, you need your bank’s foreign remittance option or a licensed money transfer service. If you have family in the Gulf, here’s how to find the cheapest way to send money from UAE to India.

Can I cancel a bank transfer after sending it?

Usually, no.

UPI, IMPS and RTGS are instant. Once sent, they’re gone. NEFT can sometimes be stopped only if it hasn’t been processed yet, and that’s rare.

Which is exactly why reading that name before you tap “Send” matters so much.

So, what’s the one thing to remember?

Remember Ankit?

He didn’t need a bank branch, a cheque, or a miracle. He just needed to know that when UPI says no, IMPS says yes.

So here’s your whole guide in four lines:

• Small and urgent? UPI.
• Bigger and urgent? IMPS.
• Not urgent? NEFT.
• ₹2 lakh and up? RTGS.

Read the name. Send ₹1 first to new people. Keep the reference number.

And if it ever goes wrong: dispute in the app, then your bank, then 1930 for fraud, then the RBI Ombudsman.

Want to get better with money overall, not just transfers? Let’s Talk Money by Monika Halan is a simple book written for Indian readers.

That’s really all you need to transfer money between banks without that Sunday-night panic.

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Recommended reads

• UPI and Online Fraud in India: How to Keep Your Money Safe
• Emergency Fund in India: How Much You Need and Where to Keep It
• Send Money from UAE to India: Cheapest Ways Compared
• Diwali Gifts and Tax in India: Cash, Gold and Office Gifts
• 15 Smart Ways to Save Money Every Month in India (2026)

This article is for general information only. Limits, charges and timings are set by NPCI, RBI and your bank, and can change. Please check your bank’s official website or app for the latest details before making a large transfer. Ankit’s story is an illustrative example.