Is there any UPI Transaction Charges

Unified Payments Interface (UPI) is a digital payment system regulated by the Reserve Bank of India (RBI), providing a secure and efficient way to send and receive money without the need for physical cash or traditional credit/debit cards. It eliminates the need for visiting a bank branch, offering a seamless digital transaction experience.

You can make UPI payments through several methods:

• Virtual IDs: This includes Virtual Payment Addresses (VPA) and QR codes, which provide a simple way to make payments without sharing bank details.
• Account Number and IFSC Code: You can use your account number and Indian Financial System Code (IFSC) to complete transactions.
• Aadhaar Number: Payments can also be linked to your Aadhaar number for added convenience. 

Important Note: While UPI is user-friendly and generally free of charge, it’s crucial to doublecheck the UPI ID and other identifying details of the recipient before confirming a transaction. Once initiated, UPI transactions cannot be stopped or cancelled, so accuracy is essential to avoid errors.

According to the National Payments Corporation of India (NPCI), UPI transaction limits are as follows:

• General Transactions: Up to ₹1,00,000 per day.
• Special Categories: Up to ₹2,00,000 for transactions related to capital markets and insurance.
• Merchant Transactions and IPOs: Up to ₹5,00,000.

The daily transfer limit can vary from bank to bank, typically ranging between ₹25,000 and ₹1,00,000. Some banks may also impose weekly or monthly limits rather than daily ones.

For most consumers, UPI transactions are free of charge. There are no additional fees for peerto-peer (P2P) or peer-to-merchant (P2M) transactions. However, starting from 1st April 2023, an interchange fee of 1.1% applies to UPI transactions exceeding ₹2,000 if made through prepaid payment instruments (PPIs).

Prepaid Payment Instruments (PPIs) are financial tools that allow you to store money and use it for transactions. Examples of PPIs include prepaid wallets, where you load money in advance to make purchases or conduct financial activities. You can track these transactions through your prepaid wallet app. 

An interchange UPI fee is a transaction fee the merchant pays to the payment service provider. When you use a prepaid wallet to pay a merchant, the merchant incurs an interchange fee paid to the service provider managing the wallet.

Customers are not responsible for paying the interchange fee. The merchant, not the consumer, bears the cost associated with PPI transactions. As a customer, you do not need to worry about this fee when making payments using a prepaid wallet or other PPI.

If you don’t have PayZapp, follow these steps to start making zero-charge UPI transactions:

• Step 1: Download PayZapp from the App Store (iOS devices) or Google Play Store (Android devices).
• Step 2: Verify your SIM card and device.
• Step 3: Link your bank accounts, Debit and Credit Cards so that you have multiple payment options.
• Step 4: Set UPI PIN for new UPI IDs. • Step 5: Click on ‘Send Money’ or ‘Scan QR code to pay’ to send money.
• Step 6: Identify the payee by entering their UPI ID, number, etc.
• Step 7: Type in the amount you wish to send and click ‘Pay’.
• Step 8: Enter your 4- or 6-digit UPI PIN to complete the transaction. You will receive a notification shortly after your transaction to let you know if it was successful, failed, or pending approval.

You can also review your transactions in the Passbook section.

Click for online payment with PayZapp on your iOS device.

Click here to pay online with PayZapp on your Android device.

UPI transactions are typically free for customers, though merchants might incur a small fee if the payment is made from a PPI wallet. Most payment gateways do not charge a fee for UPI transactions.

To start making secure and convenient online payments with no charges, download PayZapp.