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Paying Salaries Through UPI? See Transaction Limits for SBI, HDFC, and KredPay

Get an insight on the transaction limits for SBI and HDFC vis-a-vis KredPay. KredPay allows limitless transactions and is integrated to the HRMS tool. It creates a seamless experience for employees as well as the HR and payroll departments for a secure salary payout from any bank account to your employees’ account.

For years companies paid salaries to their employees through checks which took about 3-4 days to clear. Later as banking technology evolved, online transfer replaced checks and it took employees just a day to get their pay. 

Banking technology has completely changed now and it’s time to move to the next level of payments technology- Digital Wallets- which can move money from one account to another in a matter of seconds. Digital wallets have become so popular that a survey by McKinsey shows that 3 out of 4 people, irrespective of age, will use digital wallets very frequently.  (Read our article on Benefits of Automating Salary Payments)

Digital wallets are not just for paying for goods and services but can also be used to collect payments, including salaries, from others.


What is UPI?

Unified Payment Interface, popularly known as UPI, is used to transfer money from one bank account to another using just the mobile phone number. This service is available 24×7 regardless of the bank working hours and the wallet being used. UPI was set up by the National Payment Corporation of India (NPCI) which is regulated by the Reserve Bank of India (RBI). Registration of the beneficiary is not required for transferring funds through UPI as the funds are transferred based on the authorization data provided by the sender. 

Here’s a comparison of two popular UPI apps in India. 

SBI Pay app: Better known as BHIM SBI pay, this is one of the most popular apps in the country.  There is a daily transfer limit of maximum INR 1, 00,000 from one account to another. The maximum number of transactions allowed is 10 within 24 hours. 

One of the advantages of BHIM SBI Pay is you don’t need internet banking to use this app. A person without a State Bank of India (SBI) account can use this, however one needs to have a bank account with some bank. Having a debit card is mandatory to activate your account. Also, the same mobile number should be registered with the bank to carry out the transactions. Registration to the app is a 4-step easy process. You need to have a UPI pin which will be applicable for all transactions. 

HDFC Payzapp: HDFC Bank has recently announced some changes to its Payzapp app. They have started charging nominal fees after the first 20 transactions. The registration and usage of the app remain the same otherwise. HDFC has a feature to use the virtual card. 

It is a one-time use card that can help with online payments. This is useful for those who don’t want to use their permanent debit card online. HDFC has also launched a business version of the app called Payzapp for Business, which is meant to help businesses collect payments from anywhere. 


The charges for P2P fund transfers via UPI are as follows:

No. of “Send money” fund transfers (P2P)

Transaction below or equal to INR 1,000

Transaction above INR 1,000

From 1st to 20th

 Free

 Free

From 21st onwards

INR 2.75 + GST

INR 4.75 + GST

What is possible with salary UPI payments? 

There has been a complete change in the way people handle money after digitalization of the banking services. While companies started transferring salaries using digital methods long ago and is now the favored way to pay employees for their services, the question is can companies do the same using UPI? The answer is yes as there are several benefits of using UPI to pay salaries. The immediate advantage is the amount of time saved in payroll activity. While most online banking services are free, there’s always a limit to how much money can be transferred using the application and to how many people. Banks have their limitations here. The tricky part, however, is paying salaries to the employees using a special application.

What is KredPay? 

KredPay is the Salary Payment Gateway of India that is linked to the HRMS system and can be used to pay salaries to employees. The highpoint is that it allows you to make safe salary payouts from any bank account to your employees’ bank account with a single click. It can also be used to make other monetary transactions, just like any other payment gateway. 

Since it is linked to HRMS the time that is spent in keeping a log of attendance, leaves etc to consolidate at the end of the month for salary payouts is considerably reduced and the HR team can use their time efficiently in focusing on other strategic matters. 

The best part about KredPay is it supports limitless transactions and there are no charges whatsoever at any stage. As it’s part of the HRMS solution, it’s transparent and employees know about their salary, taxes, and cuts linked to their work. 

(In fact, if you run a SaaS business, KredPay can be one of the options to manage your recurring payments. Read our article on The Top 10 Challenges of Recurring Payments For SaaS Business)

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