• FASTAG
  • UPI Guide
  • UPI Apps
    • BHIM
    • Google Pay
    • Paytm
    • Phonepe
    • Samsung Pay
    • SBI Pay
    • Whatsapp
  • Payment Methods
  • Payments Basic
  • Customer care
  • हिंदी
  • Skip to primary navigation
  • Skip to main content
  • Skip to footer
  • Home
  • Videos
  • FASTAG
  • UPI apps
    • Google Pay
    • Paytm
    • BHIM
    • Phonepe
    • SBI Pay
    • Whatsapp
    • Samsung Pay
  • Payments Bank
  • हिंदी
  • Customer care
  • NEFT, IMPS
  • UPI
    • How To Use
    • UPI PIN
    • Linking Bank Accounts
    • Transaction Limits
    • 5 Best UPI Apps
  • Tax Saving

UPI Payments- Google Pay, Phonepe, Paytm, UPI PIN, UPI ID

All About Payments in India

UPI Transaction Charges of SBI, ICICI, HDFC, Paytm and Others

By Chandrakant Mishra | Published On May 27, 2019

UPI Transaction charges are no longer free. Some of the banks started to charge after a fixed number of transaction. However, the government and NPCI has persuaded most of the banks to keep this service free. But it does not mean that UPI transaction would always remain free. The app developers, Banks and NPCI are incurring cost on UPI money transfer. Thus, in future more and more banks may charge for this mode of the fund transfer.

upi transaction charges

UPI Charges of Kotak Mahindra Bank

The Kotak Mahindra Bank is the only bank which charges or the UPI money transfer. These charges are introduced since 1st May 2019. Earlier it was free.

Transactions Charge
First 30 transactions Nil
Transactions up to  ₹1,000 ₹2.5
Transactions amount above ₹1,000 ₹5.0
  • The first 30 transactions in a month would remain free.
  • The subsequent transaction would be charged as per the given table.
  • Merchant payments, online shopping, bill payments etc done via UPI will remain free.
  • The UPI Transfer processed through the Kotak Mahindra Bank would be charged as per schedule. The UPI app may not be from the Kotak.
  • KhaaliJeb and KotakPay use the Kotak Mahindra Bank for the UPI processing.

Government Waives MDR Charge in Budget 2019

UPI Transaction Charges of SBI, Paytm, Phonepe etc

The good news is that UPI fund transfer is still free even after the 3 years of the launch. SBI, ICICI, HDFC, Paytm and other banks do not charge for this transaction. The banks are losing some money just to promote this way of fund transaction. You would be aware that these banks charge for the NEFT, IMPS and RTGS payments. The fund transfer charges can go up to ₹50. However, except UPI all other methods of fund transfer can be used in PC as well. Whereas UPI is only available on your phone. UPI fund transfer has some more limitations.

To know more about the fund transfer charges of other payment methods you can read my another post.

sbi upi app download

Cost of UPI Transaction in Future

Yes! it is right that UPI is free now. But it does not mean that UPI would be free in future as well. As there is no in-principle decision to keep it free forever. However, NPCI would try to keep it low cost. So, don’t worry and adopt UPI payments as soon as possible.

The UPI fund transfer goes through the 3 parties.

  1. UPI apps which may or may not be developed by the banks.
  2. Banks which sends or receives money from their accounts.
  3. NPCI which provides the fund transfer switch or platform.

All these entities incur cost on UPI Payments. Thus all of them can charge for their services. Hence, there might be a charge in the future.

  • The apps try to recover their cost by promoting other services.
  • Banks are processing the actual fund transfer. It is an automatic process and banks spend on technology. But as of now, they are bearing this cost.
  • NPCI is charging for the UPI platform. This can go up to ₹0.50 per transaction.

UPI Charges by NPCI

Transaction Charge/transaction
Upto ₹1,000 10 paise
Above ₹1,000 50 paise
Incentive by the Apps 10 paise
Merchant Transaction 10 paise + 0.04%

You can see that NPCI charge a nominal amount for the UPI transaction. It is only 10 paise per transaction up to ₹1000. Beyond this, NPCI is charging only 50 paise. Merchant Transaction charge is also very low compared to debit and credit cards.

Recommended: No MDR of UPI and Rupay – New Rules of 2020

Also Read: IMPS Fund Transfer and Charges

UPI Charge Vs Paytm Wallet

As of now UPI and Paytm both don’t ask any transaction charge for money transfer. But we have to understand the cost structure of both these payment mechanisms. The Paytm and UPI transfer go through these steps.

UPI Transfer Steps

  • You use UPI app and give the mandate to transfer an amount to a VPA or account.
  • The NPCI acts as the switch and identifies the correct account. The UPI charges very negligible amount ₹0.5 for this switch. As of now, it does not charge anything.
  • The money gets transferred directly to the account. The money goes directly from one account to another. Since it is an interbank transfer, UPI Enabled banks do not charge with each other.

Useful Post – Paytm Vs Phonpe? Which is a Better Mobile App

Paytm Wallet Transfer Steps

  • Paytm wallets get the deposit from the bank account. The banks charge 1-2% for this transaction. But Paytm doesn’t charge it to you. It bears this cost.
  • You transfer money from one  Paytm wallet to another. The Paytm doesn’t charge for this as well.
  • The receiver of fund transfers money back to his account. The Paytm doesn’t charge for this, however, It charges if the amount goes beyond ₹ 10,000. It is 1% of the value.

You can see that Paytm bears the fees charged by the bank. It is not transferred to you because Paytm is spending on customer acquisition. But once the Paytm ends promotion, the money transfer into a Paytm wallet can be charged. However, Paytm would try to compensate this expense through selling products on its platform. Also, for a big amount Paytm is too costly.

Thus, I advise the UPI app instead of Paytm because it is based on very simple and cheap infrastructure. Moreover, UPI doesn’t try to sell you and works across the banks without any intermediary. In fact UPI has many benefits over existing payment systems. There are many UPI apps such as BHIM,  SBI UPI, ICICI UPI, HDFC UPI, Axis UPI etc. You can choose any from the best UPI apps. There is too much flexibility.

Filed Under: UPI- Unified Payment Interface

About Chandrakant Mishra

Chandrakant Mishra is the Founder-Editor of the upipayments.co.in and PlanMoneyTax.Com. He has written more than 600 articles on payments, tax, investment, insurance and saving. He has been associated with the CNBC Aawaz Business Channel as Assistant Editor.

UPI Pay Later in ICICI Bank and HDFC Bank: Activation and Charges

In the past 7 years, UPI has seamlessly integrated into our daily lives, transforming the landscape of payments in India. It's not just about payments; UPI keeps evolving with new features. One of the … [Read More...] about UPI Pay Later in ICICI Bank and HDFC Bank: Activation and Charges

Account Payee Cheque: How to Issue and Encash?

In today's digital age, most individuals possess a bank account equipped with chequebook facilities. However, the use of physical cheques has dwindled resulting in a general lack of familiarity with … [Read More...] about Account Payee Cheque: How to Issue and Encash?

UPI Transaction Limit of Google Pay, SBI, ICICI, HDFC, and 40 other Banks

UPI transactions are quite convenient. But they come with limitations. These limits might become an issue when you need to make a payment urgently. UPI transactions have two types of limits: one … [Read More...] about UPI Transaction Limit of Google Pay, SBI, ICICI, HDFC, and 40 other Banks

Footer

How To Activate Airtel Payment Bank’s Dormant Account

Opening multiple accounts is simple, but maintaining them can be challenging. The same applies to an Airtel Payment bank account that you might have opened a while ago. However, over time, this account may have become dormant or blocked, even though it might still hold some funds. Are you now eager to reactivate or unblock […]

Solution: You have exceeded the maximum transaction limit set by your bank!!

It is not frequent, but sometimes you can encounter the message “You have exceeded the maximum transaction limit set by your bank”. You can also see the message “You have reached the UPI payment limit set by your bank”. It applies a sudden brake on your otherwise smooth UPI Payments. This can happen whether you […]

Phonepe Transaction Limit Per Day: UPI Limit for 93 Banks (Updated 2023)

Do you want to know about the limits of the Phonepe Payments app? You’re in luck! This guide breaks down those limits into simple pieces. Let’s explore PhonePe’s daily transaction limits, understanding what you can and can’t do. Get ready to dive in. Types of Limits on Phonepe There can be various types of limits […]

HDFC Bank: How to Open PPF Account Online

Hey there, curious about how to make your money work for you? Do you want to build some long-term wealth through the HDFC Bank? Well, you’re in luck because there’s this fantastic thing called a PPF or Public Provident Fund that’s perfect for small investors like you. You might be wondering, what’s so great about […]

What is UTR Number? How to Find UTR and Check Status

The full form of the UTR number is the Unique Transaction Reference number. When you send money between banks, each transaction gets a unique UTR number.

Updated Interest Rates for Small Saving Schemes in India: July 2023

Small Saving Schemes in India are instrumental in encouraging savings and offering secure investment avenues to individuals across the country. As we step into the second quarter of the financial year 2023-24, the government has announced revised interest rates for these schemes. In this blog post, we provide a detailed overview of the revised interest […]

Disclaimer: This site is not related to NPCI or any government organisation. It is a blog to share the publicly available information.

© Copyright 2023 UPI Payments · All Rights Reserved