UPI Payments will be chargeable from 1st April 2023 ?

Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). UPI enables users to transfer money between bank accounts instantly using a mobile device, without the need for any additional information such as bank account numbers or IFSC codes.






UPI payments work through a mobile application that is linked to a user's bank account. The user can create a Virtual Payment Address (VPA) and link it to their bank account. The VPA acts as a unique identifier that can be used to receive payments from anyone who has a UPI-enabled mobile application

UPI transactions are typically free of charge for users. However, some banks or payment service providers may charge a nominal fee for certain types of transactions or for exceeding a certain limit on the number of transactions. For example, some banks may charge a fee for transferring money using UPI beyond a certain limit or for withdrawing money from an ATM using a UPI-enabled debit card.

https://www.ndtv.com/business/unified-payments-interface-national-payments-corporation-of-india-npci-upi-merchant-transactions-over-rs-2-000-to-carry-charge-of-1-1-from-april-1-3902246

The National Payments Corporation of India (NPCI) said that using Prepaid Payment Instruments (PPIs) for transactions through UPI will attract an interchange fee. The charges will be levied if the transaction is more than Rs 2,000.


The interchange pricing will be introduced on April 1, 2023, and then again reviewed by September 30, 2023. Payments made via UPI, like Paytm, Phonepe, Google Pay, to friends, family or any other individual or a merchant’s bank account will not be affected by this interchange fee

It's best to check with your bank or payment service provider to understand their specific policies on UPI charges and fees.

Recent regulatory guidelines, the Prepaid Payment Instruments (PPI Wallets) have been permitted to be part of interoperable UPI ecosystem. In view of this NPCI has now permitted the PPI wallets to be part of interoperable UPI ecosystem. 

The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account based UPI payments (i.e. normal UPI payments)," NPCI said on Wednesday