UPI vs Bank Transfer Brand Payments in India: 2026 Limits

Heads up: some links below are affiliate. Using them helps us keep the blog free. We only recommend tools we’ve actually used or trust.

You’re about to receive a brand deal payment of Rs 50,000, but the brand asks how you want to be paid. You have three options: UPI, bank transfer, or cheque. Which one should you choose? If you opt for UPI, you might be limited by the daily transaction cap of Rs 1 lakh, unless you’ve increased your limit for tax or insurance payments, which can go up to Rs 5 lakh.

As a content creator, you likely receive multiple payments every month, and choosing the right payment method can save you time and money. For instance, if you receive Rs 50,000 via UPI, you’ll get the money instantly, but if you choose a bank transfer, you might need to wait a few hours. On the other hand, if you opt for a cheque, you’ll have to wait several days for the payment to clear, and you’ll also need to visit the bank to deposit the cheque.

Quick summary

Payment Method	Limit	Transfer Time
UPI	Rs 1 lakh/day (default), Rs 5 lakh (tax/insurance)	Instant
NEFT	Rs 50,000 (per transaction)	2-4 hours
RTGS	Rs 2 lakh (per transaction)	2 hours
IMPS	Rs 2 lakh (per transaction)	Instant
Cheque	No limit	Several days

Let’s consider another example: suppose you receive a payment of Rs 2.5 lakh from a brand. If you choose UPI, you’ll exceed the default daily limit, and the payment might be declined. In this case, you can either increase your UPI limit or opt for a bank transfer like RTGS or IMPS, which can handle larger transactions.

Understanding UPI Limits

UPI has become a popular payment method in India, with instant transfers and low fees. However, there are daily transaction limits to consider. The default limit is Rs 1 lakh per day, but you can increase this limit to Rs 5 lakh for tax or insurance payments. If you receive multiple brand deal payments in a day, you might exceed the default limit. To avoid this, you can either increase your UPI limit or opt for a bank transfer. Here’s a step-by-step procedure to increase your UPI limit:

flowchart LR; A[Receive Payment] -->|Under 1 lakh| B[Use UPI]; A -->|Above 1 lakh| C[Increase UPI Limit or Bank Transfer]; B --> D[Instant Payment]; C --> E[Increase Limit]; C --> F[Choose Bank Transfer]; E --> D; F --> G[Wait for Payment]

Log in to your UPI-enabled bank account or mobile wallet.
Navigate to the settings or limits section.
Look for the option to increase your daily transaction limit.
Follow the instructions to verify your identity and increase your limit.

For instance, if you’re using Google Pay, you can follow these steps:

Open Google Pay and log in to your account.
Tap on the profile icon and select ‘Settings’.
Scroll down to the ‘Transaction limits’ section.
Tap on ‘Increase limit’ and follow the instructions to verify your identity.

You can also consider the following edge case: suppose you’re receiving a payment from a brand that’s based outside India. In this case, you might need to use a different payment method, such as a wire transfer or a payment gateway that supports international transactions.

Bank Transfer Options

Bank transfers, including NEFT, RTGS, and IMPS, offer higher transaction limits than UPI. NEFT has a per-transaction limit of Rs 50,000, while RTGS and IMPS have a limit of Rs 2 lakh per transaction. Bank transfers are a good option if you receive large payments, but they might take a few hours to process. You’ll need to provide the brand with your bank account details, including your account number, IFSC code, and bank name.

Here’s a comparison table of the different bank transfer options:

Bank Transfer Method	Limit	Transfer Time	Fees
NEFT	Rs 50,000 (per transaction)	2-4 hours	Rs 2.50 (per transaction)
RTGS	Rs 2 lakh (per transaction)	2 hours	Rs 5 (per transaction)
IMPS	Rs 2 lakh (per transaction)	Instant	Rs 5 (per transaction)

For example, suppose you’re receiving a payment of Rs 1 lakh from a brand. If you choose NEFT, the payment will take 2-4 hours to process, and you’ll be charged a fee of Rs 2.50. On the other hand, if you choose IMPS, the payment will be instant, and you’ll be charged a fee of Rs 5.

You can also consider the following step-by-step procedure to initiate a bank transfer:

Log in to your online banking account or mobile banking app.
Navigate to the ‘Fund Transfer’ or ‘Payments’ section.
Select the bank transfer method you want to use (NEFT, RTGS, or IMPS).
Enter the recipient’s bank account details, including their account number, IFSC code, and bank name.
Confirm the transaction details and initiate the transfer.

The Risks of Cheque Payments

Cheque payments are becoming less common, and for good reason. Cheques can take several days to clear, and you’ll need to visit the bank to deposit the cheque. Additionally, there’s a risk of cheque bouncing, which can delay your payment further. As a content creator, you should avoid cheque payments whenever possible and insist on UPI or bank transfers instead.

Let’s consider another example: suppose you receive a cheque payment of Rs 50,000 from a brand. If the cheque bounces, you’ll need to wait several days for the brand to issue a new cheque, which can delay your payment further. In this case, you can ask the brand to use a different payment method, such as UPI or bank transfer, to avoid the risks associated with cheque payments.

You can also consider the following edge case: suppose you’re receiving a payment from a brand that’s based in a rural area. In this case, the brand might not have access to online banking or UPI, and cheque payments might be the only option. However, you can still ask the brand to use a bank transfer or UPI-enabled payment method to avoid the risks associated with cheque payments.

Choosing the Right Payment Method

When deciding which payment method to use, consider the transaction limit, transfer time, and fees. UPI is a good option for small to medium-sized payments, while bank transfers are better for larger payments. Cheque payments should be avoided due to the risks and delays involved. You can also consider the brand’s payment preferences and choose a method that works for both parties.

Here’s a step-by-step procedure to choose the right payment method:

Determine the payment amount and the brand’s payment preferences.
Consider the transaction limits and transfer times for each payment method.
Evaluate the fees associated with each payment method.
Choose a payment method that meets your needs and the brand’s preferences.

For instance, if you’re receiving a payment of Rs 50,000 from a brand, you can choose UPI if the brand prefers instant transfers. On the other hand, if the brand prefers bank transfers, you can choose NEFT or IMPS depending on the transaction limit and transfer time.

You can also consider the following comparison table to choose the right payment method:

Payment Method	Limit	Transfer Time	Fees
UPI	Rs 1 lakh/day (default), Rs 5 lakh (tax/insurance)	Instant	Rs 0 (per transaction)
NEFT	Rs 50,000 (per transaction)	2-4 hours	Rs 2.50 (per transaction)
RTGS	Rs 2 lakh (per transaction)	2 hours	Rs 5 (per transaction)
IMPS	Rs 2 lakh (per transaction)	Instant	Rs 5 (per transaction)
Cheque	No limit	Several days	Rs 0 (per transaction)

Payment Security

Payment security is another important consideration when choosing a payment method. UPI and bank transfers are generally secure, with multiple layers of authentication and encryption. Cheque payments, on the other hand, can be vulnerable to fraud and tampering. To ensure secure payments, always use a trusted payment method and verify the brand’s payment details before accepting a payment.

Here’s a step-by-step procedure to ensure payment security:

Verify the brand’s payment details, including their bank account number and IFSC code.
Use a trusted payment method, such as UPI or bank transfer.
Enable two-factor authentication for your payment method.
Monitor your account activity regularly to detect any suspicious transactions.

For example, if you’re using UPI, you can enable two-factor authentication by setting up a UPI PIN or using a mobile wallet that supports UPI.

How CreatorKhata helps

The Payment Tracker feature in CreatorKhata helps you log UPI, NEFT, RTGS, and IMPS reference numbers for every payment, making it easy to reconcile your payments with your bank statement. This saves you time and reduces the risk of errors. Try CreatorKhata free.

Tools that help with this

CreatorKhata — All-in-one business app for Indian creators — invoices, brand-deal contracts, payment tracking, GST & TDS-ready
Razorpay — Indian payment gateway — accept brand-deal payments, UPI, cards, international
Creator gear on Amazon India — Cameras, mics, lighting, and accessories for content creators

A note on accuracy

This is general guidance. For your specific situation, consult a chartered accountant.