UPI Transaction Charges: Guidelines, Rules, and Key Details

UPI transaction charges are generally zero for personal bank-to-bank payments. The standard UPI transaction limit per day is ₹1 lakh, while select categories allow higher limits as notified by NPCI. Interchange fees apply only in specific wallet-based merchant transactions and are not paid by customers.

Key Highlights

• Personal UPI Payments: No charges for bank-to-bank transfers.
• UPI Transaction Limit: ₹1 lakh per day for most users.
• Higher Category Limits: Up to ₹5 lakh per transaction in select categories (effective 15 September 2025).
• Wallet Interchange: 0.5%–1.1% on certain PPI merchant transactions above ₹2,000 (paid by merchants, not users).

UPI Transaction Limit 2026

The UPI transaction limit is set by the NPCI and may vary based on transaction type, category, and bank policies. The standard limit applies to most users, while higher limits are allowed for specific categories.

UPI Transaction Charges

UPI payments made directly from a bank account are free for users. Individuals do not pay any UPI transaction charges when sending or receiving money through bank-to-bank transfers using apps like Google Pay, PhonePe, Paytm, or BHIM.

Surcharge/Interchange Fee on UPI Payment Through PPI

When UPI transactions are made through Prepaid Payment Instruments (PPIs) such as digital wallets, interchange fees may apply. These fees are similar to the merchant discount rate (MDR) used in card payments.

In such transactions, the merchant pays the interchange fee when a customer makes a payment through a wallet-based UPI transaction (for example, scanning a PhonePe QR code at a store).

The interchange fee ranges between 0.5% and 1.1%, depending on the merchant category.

Who Will Pay the Interchange Fees?

The merchant’s bank or wallet provider pays the interchange fee to the payer’s bank for processing the transaction.

• Small shopkeepers are largely unaffected since the fees apply mainly to merchant wallet transactions above ₹2,000.
• Medium and large merchants may absorb the cost or include it in pricing.

Additionally, when wallets are loaded with more than ₹2,000 using UPI, wallet issuers (such as PhonePe or Paytm) must pay a 0.15% service charge to banks.

Will Customers Have to Pay Interchange Fees?

Customers do not pay interchange fees for UPI payments made through PPIs for both:

• Peer-to-Peer (P2P) transactions – transfers between individuals
• Peer-to-Merchant (P2M) transactions – payments made to merchants

In these cases, the merchant bank pays the interchange fee to the payer bank for processing the transaction.

What is a Prepaid Payment Instrument (PPI) in UPI?

The Prepaid Payment Instrument (PPI) in UPI means digital wallets that allow a person to store money and make real-time payments online. Wallets, smart cards, preloaded gift cards, vouchers and magnetised chips also come under PPIs.

Payments through PPI are made when a transaction is done via a wallet, like a PhonePe wallet, by scanning a UPI QR code. A few more examples of wallets are the Paytm wallet, SODEXO vouchers, Amazon Pay, Freecharge wallet, etc. 

UPI Operational Guidelines 

The NPCI's updated rules across all UPI-enabled apps like Google Pay, PhonePe, Paytm, and BHIM improve system efficiency and payment security:

• Balance Check Limit: You can check your bank balance for a maximum of 50 times per day per on your UPI app. Exceeding this limit blocks balance checks for 24 hours on that app.
• Auto-Balance Display: After every successful UPI transaction, your account balance will be shown automatically.
• Account Linking Limit: You can link up to 25 bank accounts per day per UPI app (based on mobile number/account fetching).
• Transaction Status Checks: Pending transaction status can now be checked only 3 times per transaction, with a mandatory 90-second gap between each attempt.
• Auto-Debit Processing Time: Auto-debit mandates (e.g., EMIs, SIPs, subscriptions) will be processed only during non-peak hours, i.e., before 10:00 a.m. and after 9:30 p.m.
• Payee Name Display: Before completing a transfer, UPI apps must display the payee’s registered bank name, enhancing transparency and reducing fraud.

The UPI transaction limit per day is ₹1 lakh for most banks, with an enhanced limit for special categories of up to ₹10 lakh. Some banks also impose a UPI transaction limit per day to manage high-value transfers. While personal UPI payments remain free, UPI transaction charges apply to wallet-based merchant payments above ₹2,000, payable by merchants and not customers. 

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