Understanding Payment Limits and Restrictions: Why You Can't Make a Maximum Payment from a New Bank Account

When you encounter an error message stating that you can make a payment from a newly added bank account for a maximum, it's important to understand the underlying reasons behind such limitations. These restrictions can be due to various factors such as the verification process or the inherent risk management strategies employed by payment systems.

Verification Process

One common reason for these limits is the verification process required for new bank accounts. Payment systems often have a rigorous verification process in place to ensure that the account is legitimate. Until the account is fully verified, there may be a cap on the amount you can transact. This cap is usually put in place to protect both the user and the platform from potential fraud.

Risk Management

Payment platforms also impose limits on new accounts to mitigate the risk of fraud. This serves to protect both the user and the platform from financial losses. By limiting transactions from newly added accounts, these systems can effectively monitor and prevent fraudulent activities. If you believe these limits are too restrictive, you can check the terms and conditions of the payment platform in question. These documents often specify the limits and the reasons behind them.

Account Type

Another factor to consider is the type of account. Different types of accounts, such as personal versus business accounts, may have different transaction limits. It's important to ensure that your account type aligns with your intended use. If your account is intended for business transactions, you should verify that it meets the business account requirements and has the appropriate limits.

Technical Glitches

In some cases, the message you receive may be due to a temporary issue with the payment system. If you suspect that this is the case, try making the payment at a later time. Alternatively, you can contact customer support for assistance. They can help you troubleshoot the issue and ensure that the limit is not a permanent one.

Specific Examples: NPCI and UPI Transactions

The National Payments Corporation of India (NPCI) has set specific transaction limits for Unified Payment Interface (UPI) transfers. As of the current standards:

The transaction limit per UPI transaction is 1 lakh (100,000). The daily transaction limit for UPI is also 1 lakh (100,000). The upper limit for BHIM UPI is 10,000 per transaction and 20,000 in a 24-hour window.

These limits are based on the IMPS technology on which UPI is built. However, the actual upper limit may vary depending on the bank-to-bank transactions. For example, the upper limit could range from 10,000 to 1 lakh depending on the specific banks involved.

It is also worth noting that these limits may be revised from time to time. Therefore, it's important to stay informed about any changes in the transaction policies. This is particularly relevant for NON-KYC accounts, such as the small savings account (SBA) of SBI or similar accounts with other banks. In such cases, the daily limit may be lower, typically around Rs 5,000.

For specific information about a particular bank's restrictions, you will need to provide the name of the bank in question. This additional information will allow for a more accurate and specific answer.