{"id":9860,"date":"2026-02-10T10:10:14","date_gmt":"2026-02-10T04:40:14","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=9860"},"modified":"2026-02-10T16:26:08","modified_gmt":"2026-02-10T10:56:08","slug":"upi-transaction-charges","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/","title":{"rendered":"UPI Transaction Charges 2026: Understanding PPI Fees &#038; Zero MDR"},"content":{"rendered":"<p dir=\"ltr\" data-line-height-align=\"1.38\">The Unified Payments Interface (UPI) was developed by the National Payments Corporation of India (NPCI) to facilitate seamless, real-time bank-to-bank transactions. With UPI, users can effortlessly transfer money to friends, pay utility bills, or make payments to merchants directly from their bank accounts using mobile apps. Today, UPI has become the go-to payment solution in India, thanks to its ease of use, quick processing, and the fact that it offers free transactions for most users.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d09807e1fcb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d09807e1fcb\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#What-is-a-Prepaid-Payment-Instrument-PPI-in-UPI\" >What is a Prepaid Payment Instrument (PPI) in UPI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-Transaction-Charges-in-2026-for-Individuals\" >UPI Transaction Charges in 2026 for Individuals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-Transaction-Charges-in-2026-for-Merchants\" >UPI Transaction Charges in 2026 for Merchants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-Transaction-Charges-and-Limits-Across-Different-UPI-Apps\" >UPI Transaction Charges and Limits Across Different UPI Apps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-Transaction-Limit-Per-Day\" >UPI Transaction Limit Per Day<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-Transaction-Limit-Per-Week\" >UPI Transaction Limit Per Week<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-Transaction-Limit-Per-Month\" >UPI Transaction Limit Per Month<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-Transaction-Limits-for-Top-Banks-in-India\" >UPI Transaction Limits for Top Banks in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#UPI-New-Rules-and-Guidelines\" >UPI New Rules and Guidelines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#Frequently-Asked-Questions-FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 dir=\"ltr\" data-line-height-align=\"1.38\"><span class=\"ez-toc-section\" id=\"What-is-a-Prepaid-Payment-Instrument-PPI-in-UPI\"><\/span>What is a Prepaid Payment Instrument (PPI) in UPI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A Prepaid Payment Instrument (PPI) is a digital wallet or prepaid card that stores money electronically, allowing users to make payments through UPI. Popular PPIs include wallets like Paytm, PhonePe, and Amazon Pay, enabling seamless transactions for both peer-to-peer (P2P) and peer-to-merchant (P2M) payments. While UPI itself is free, PPIs may attract interchange fees for transactions exceeding \u20b92,000, depending on the merchant and service.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"UPI-Transaction-Charges-in-2026-for-Individuals\"><\/span><b>UPI Transaction Charges in 2026 for Individuals<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As per NPCI, <\/span><b>there are no transaction charges for personal UPI payments<\/b><span style=\"font-weight: 400;\">, regardless of the amount. Whether you&#8217;re paying for groceries, sending money to friends, or making any other personal transactions, <a href=\"https:\/\/razorpay.com\/blog\/what-is-upi-and-how-it-works\/\">UPI<\/a> remains completely free for individuals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">UPI transactions are free for:<\/span><\/p>\n<ol>\n<li><b>Peer-to-peer (P2P) UPI payments: <\/b><span style=\"font-weight: 400;\">These are UPI transfers between individuals, allowing users to send money directly to friends or family with ease. For example, you can split a bill with a friend or send money as a gift without incurring any charges.<\/span><\/li>\n<li><b>Peer-to-merchant (P2M) UPI payments<\/b><span style=\"font-weight: 400;\">: This refers to payments made directly from a bank account to a merchant. When you purchase goods or services from a shop or through an <a href=\"https:\/\/razorpay.com\/learn\/what-is-online-transaction\/\">online transaction<\/a> using UPI, the payment is processed directly, making transactions quick and seamless. This option is especially popular for small businesses that accept UPI payments. It is also important to note that the customer pays nothing extra, and this fee is a cost borne entirely by the merchant.<\/span><\/li>\n<\/ol>\n<p><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/blog\/irdai-bima-asba-new-upi-based-payment-system-for-insurance-premiums\/\">Bima ASBA: IRDAI\u2019s New UPI-Based Insurance Payment System<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"UPI-Transaction-Charges-in-2026-for-Merchants\"><\/span><b>UPI Transaction Charges in 2026 for Merchants<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For merchants, UPI charges depend on the payment instrument used, not the UPI interface itself. Bank-to-bank UPI transactions carry a government-mandated 0% MDR, meaning no network charge is applied. However, merchants will still pay a platform fee to their payment gateway for processing, security, reconciliation, and settlements.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Charges apply when UPI is used with credit or wallet-based instruments. UPI payments made via RuPay Credit Cards attract an MDR of approximately 1.1% to 2%, as these transactions involve a bank-funded credit. In such cases, the payment gateway\u2019s platform fee is added separately.\u00a0<\/span><\/p>\n<p>Here is the breakdown of charges for the <a href=\"https:\/\/razorpay.com\/payment-gateway\/\">Razorpay Payment Gateway<\/a>.<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h4><b>Transaction Type<\/b><\/h4>\n<\/td>\n<td>\n<h4><b>MDR\u00a0<\/b><\/h4>\n<\/td>\n<td>\n<h4><b>Platform Fee (Razorpay Payment Gateway)<\/b><\/h4>\n<\/td>\n<td>\n<h4><b>Total Impact<\/b><\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td><b>UPI (Bank Account)<\/b><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Platform Fee only<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>UPI (RuPay Credit Card)<\/b><\/td>\n<td><span style=\"font-weight: 400;\">~1.1% &#8211; 2%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.15%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">MDR + Platform Fee<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">A common misconception among merchants is that UPI payments should be entirely free because the government has mandated zero MDR. This often leads to comparisons between payment gateways, with some being perceived as \u201ccharging\u201d for UPI and others as \u201cfree.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The truth is simpler and more uniform. Zero MDR governs the UPI ecosystem, not the payment gateway layer. Payment gateways are independent service providers that build and maintain the infrastructure businesses rely on to accept UPI payments smoothly and securely.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">No payment gateway can offer enterprise-grade reliability, compliance, settlement, and reporting without incurring costs, and those costs must be recovered in some form.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Merchants may also be subject to interchange fees on UPI payments made through Prepaid Payment Instruments (PPIs) such as digital wallets. These fees apply only to transactions exceeding \u20b92,000 and only for medium and large merchants. Small merchants are mostly exempted. The interchange rate varies by merchant category, as defined by NPCI:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fuel: 0.5%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Post office, telecom, utilities, agriculture, education: 0.7%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supermarkets: 0.9%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insurance, mutual funds, railways: 1.1%<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When applicable, interchange fees are borne by the merchant, who may choose to absorb or pass on the cost. Additionally, NPCI has introduced a wallet-loading service charge of up to 0.15% for wallet recharges above \u20b92,000. This charge is paid by the wallet issuer and does not apply to merchant UPI transactions.<\/span><\/p>\n<p><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/blog\/how-to-make-offline-upi-payments\/\">How To Make a UPI Payment Without Internet?<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"UPI-Transaction-Charges-and-Limits-Across-Different-UPI-Apps\"><\/span><b>UPI Transaction Charges and Limits Across Different UPI Apps<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">With the increasing popularity of UPI, various apps have emerged, each offering distinct features and charging different fees for transactions. Here\u2019s a detailed breakdown of the UPI transaction charges and UPI transaction limits associated with some of the most widely used UPI apps in 2026:<\/span><\/p>\n<h3><strong>PhonePe UPI Fees and Limit<\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>PhonePe Charges:<\/b><span style=\"font-weight: 400;\"> PhonePe offers free UPI transactions for individual users, including both peer-to-peer (P2P) and peer-to-merchant (P2M) payments. However, merchants may incur interchange fees ranging from 0.5% to 1.1%, depending on the service category.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><a href=\"https:\/\/razorpay.com\/learn\/phonepe-transaction-limit\/\">PhonePe Transaction Limit<\/a>:<\/b><span style=\"font-weight: 400;\"> Users can transact up to \u20b91 lakh per day, with a maximum of 20 transactions allowed. Newly registered PhonePe UPI users are initially limited to Rs. 5,000 within the first 24 hours.<\/span><\/li>\n<\/ul>\n<h3><strong>Google Pay UPI Charges and Limit<\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gpay Charges:<\/b><span style=\"font-weight: 400;\"> Google Pay does not impose any fees on users for P2P or P2M transactions. Merchants utilizing Google Pay for transactions may incur interchange fees based on the type of service.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transaction Limit:<\/b><span style=\"font-weight: 400;\"> The daily <a href=\"https:\/\/razorpay.com\/learn\/gpay-transaction-limit\/\">transaction limit for GPay users<\/a> is set at \u20b91 lakh, with a cap of 20 transactions per day. For newly registered GPay users, an initial UPI transaction limit of \u20b95,000 is applicable for the first 24 hours.<\/span><\/li>\n<\/ul>\n<h3><strong>Paytm UPI Charges and Limit<\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Charges:<\/b><span style=\"font-weight: 400;\"> Paytm allows free UPI transactions for users, making it convenient for personal payments. Merchants may face interchange fees on transactions, particularly those exceeding \u20b92,000.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transaction Limit:<\/b><span style=\"font-weight: 400;\"> Users can conduct transactions up to \u20b91 lakh per day, with limits varying by bank. For newly registered Paytm UPI users, an initial UPI transaction limit of \u20b95,000 is applicable for the first 24 hours.<\/span><\/li>\n<\/ul>\n<h3><strong>Amazon Pay UPI Charges and Limit<\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Charges:<\/b><span style=\"font-weight: 400;\"> Amazon Pay does not charge users for sending money or making payments through UPI. Merchants may need to cover interchange fees similar to other <a href=\"https:\/\/razorpay.com\/payment-gateway\/\">payment gateway providers India.<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transaction Limit:<\/b><span style=\"font-weight: 400;\"> Users can make UPI transactions up to \u20b91 lakh per day, following the standard UPI guidelines. For newly registered Amazon Pay UPI users, an initial UPI transaction limit of \u20b95,000 is applicable for the first 24 hours.<\/span><\/li>\n<\/ul>\n<h3><strong>BHIM App UPI Charges and Limit<\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Charges:<\/b><span style=\"font-weight: 400;\"> The BHIM app provides free UPI transactions for both individuals and merchants. However, merchants may be subject to interchange fees depending on the type of transaction processed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: 19px;\">Transaction Limit:<\/b><span style=\"font-weight: 400;\"> The transaction limit for users is \u20b91 lakh per day, with a maximum of 20 transactions allowed. For newly registered BHIM UPI users, an initial UPI transaction limit of \u20b95,000 is applicable for the first 24 hours.<\/span><\/li>\n<\/ul>\n<p><em style=\"font-size: 19px; text-align: center;\"><strong>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/upi-transaction-limit-for-tax-payments\/\">Updated UPI Transaction Limit for Tax Payments<\/a><br \/>\nRelated Read: <a href=\"https:\/\/razorpay.com\/learn\/gst-on-upi-payments\/\">GST on UPI Payments<\/a><\/strong><\/em><\/p>\n<h2 dir=\"ltr\" data-line-height-align=\"1.38\"><span class=\"ez-toc-section\" id=\"UPI-Transaction-Limit-Per-Day\"><\/span>UPI Transaction Limit Per Day<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>UPI transaction limit per day<\/b><span style=\"font-weight: 400;\"> is set at <\/span><b>\u20b91 lakh<\/b><span style=\"font-weight: 400;\"> by the <a href=\"https:\/\/razorpay.com\/learn\/national-payments-corporation-of-india-services\/\">National Payments Corporation of India (NPCI)<\/a>. For <\/span><a href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/\"><b>UPI 123Pay<\/b><\/a><span style=\"font-weight: 400;\">, the per-transaction limit is <\/span><b>\u20b910,000<\/b><span style=\"font-weight: 400;\">. Users are also restricted to a maximum of <\/span><b>20 UPI transactions<\/b><span style=\"font-weight: 400;\"> in a single day.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For specific transactions, a higher UPI transfer limit of <\/span><b>\u20b95 Lakh is applicable<\/b><span style=\"font-weight: 400;\">, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax payments<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payments to educational institutions and hospitals<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IPO applications<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payments to RBI&#8217;s retail direct schemes<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It&#8217;s important to note that UPI transfer limits vary by bank, with some offering daily limits ranging from <\/span><b>\u20b925,000 to \u20b91 lakh<\/b><span style=\"font-weight: 400;\">. Additionally, certain banks may impose weekly or monthly limits instead of daily ones.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As of September 2025, UPI payments in sectors like capital markets, foreign remittances, and insurance have a \u20b95 lakh daily limit. For verified merchants in education and healthcare, the UPI limit is extended to \u20b95 lakh per day.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you exceed these limits, you\u2019ll need to wait for the 24-hour cycle to reset before making further transfers.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"UPI-Transaction-Limit-Per-Week\"><\/span><strong data-start=\"34\" data-end=\"68\">UPI Transaction Limit Per Week<br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"34\" data-end=\"243\">The weekly UPI transaction limit varies depending on the bank, and it\u2019s set individually within the UPI network. Some banks impose their own limits for weekly transactions.<\/p>\n<p class=\"\" data-start=\"245\" data-end=\"319\"><strong data-start=\"245\" data-end=\"256\">Example<\/strong>: For IDFC Bank, the weekly UPI transaction limit is \u20b97,00,000 (considering the daily limit is \u20b91,00,000).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"UPI-Transaction-Limit-Per-Month\"><\/span><strong data-start=\"34\" data-end=\"68\">UPI Transaction Limit Per Month<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"326\" data-end=\"494\">The monthly UPI transaction limit is applicable to some public and private sector banks and differs across financial institutions. Most banks operate on a daily limit cycle. Weekly and monthly caps are uncommon and typically apply only to high-risk accounts or for security reasons.<\/p>\n<p class=\"\" data-start=\"496\" data-end=\"567\"><strong data-start=\"496\" data-end=\"507\">Example<\/strong>: IDFC Bank\u2019s UPI transaction limit per month is \u20b930,00,000.<\/p>\n<h2 dir=\"ltr\" data-line-height-align=\"1.56\"><span class=\"ez-toc-section\" id=\"UPI-Transaction-Limits-for-Top-Banks-in-India\"><\/span>UPI Transaction Limits for Top Banks in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">The basic UPI limit per day and the number of transaction limits set by NPCI are common, that is, Rs 1,00,000 in a day or up to a maximum of 20 transactions. However, banks can have individual limits. Here are the details of some of the most common banks &#8211;<\/p>\n<table dir=\"ltr\">\n<tbody>\n<tr>\n<td>\n<p dir=\"ltr\" style=\"text-align: center;\" data-line-height-align=\"1.2\"><strong>Bank Name<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>UPI Daily Limit<\/strong><\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" style=\"text-align: center;\" data-line-height-align=\"1.2\"><strong>UPI Transaction Limit<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">SBI<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">PNB<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 100,000<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">IDFC<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Indian Bank<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Bank of India<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Indian Overseas Bank<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Rs. 1,00,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p dir=\"ltr\" data-line-height-align=\"1.38\">However, these limits are subject to change and may differ based on the type of UPI transaction, such as peer-to-peer or merchant payments. It is important to check with your bank or <a href=\"https:\/\/razorpay.com\/blog\/what-is-a-payment-service-provider\/\">payment service provider<\/a> for the specific UPI transfer limit applicable.<\/p>\n<p dir=\"ltr\" data-line-height-align=\"1.38\"><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/sbi-upi-transaction-limit\/\">What is the SBI UPI Transaction Limit Per Day?<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"UPI-New-Rules-and-Guidelines\"><\/span><b>UPI New Rules and Guidelines<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. Transaction Limit Increase for UPI 123Pay:<\/b><\/h3>\n<p>The RBI has doubled the per-transaction limit for\u00a0<b>UPI 123Pay<\/b>\u00a0from\u00a0<b>Rs 5,000 to Rs 10,000 on October 9, 2024<\/b>. This change significantly benefits feature phone users, allowing them to conduct higher-value transactions with ease.<\/p>\n<h3><b>2. Increase in UPI Lite Wallet Limit:<\/b><\/h3>\n<p>The limit for\u00a0<a href=\"https:\/\/razorpay.com\/blog\/what-is-upi-lite\/\"><b>UPI Lite<\/b><\/a>\u00a0wallets has also been raised from\u00a0<b>Rs 2,000 to Rs 5,000 on October 9, 2024<\/b>. This adjustment aims to simplify small-value digital transactions, enhancing convenience for users.<\/p>\n<h3><b>3. Volume Cap on UPI Apps:<\/b><\/h3>\n<p>To prevent monopolistic practices in the UPI ecosystem, NPCI has proposed a <b>30% volume cap<\/b>\u00a0on transactions processed by any single UPI app. This cap is designed to promote fair competition among Third Party App Providers (TPAPs). The implementation deadline for this cap has been extended to\u00a0<b>December 31, 2024<\/b>.<\/p>\n<h3><b>4. Interchange Fee Structure:<\/b><\/h3>\n<p>As outlined earlier, an interchange fee of up to\u00a0<b>1.1%<\/b>\u00a0will be applicable for merchants on UPI transactions exceeding\u00a0<b>Rs. 2000<\/b>\u00a0when processed through Prepaid Payment Instruments (PPIs). This fee aims to cover the costs associated with transaction processing and authorizations.<\/p>\n<h3><b>5. Exemption for Small Merchants:<\/b><\/h3>\n<p>To support small businesses, the interchange fees will not apply to small merchants for transactions below\u00a0<b>Rs. 2000<\/b>. This exemption aims to encourage more merchants to adopt UPI as a payment method without incurring additional costs.<\/p>\n<p><em><strong>Related Read: <\/strong><\/em><a href=\"https:\/\/razorpay.com\/learn\/wrong-upi-transaction\/\"><em><strong>How to Reverse Wrong UPI Transactions?<\/strong><\/em><\/a><\/p>\n<h2 dir=\"ltr\" data-line-height-align=\"1.38\"><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><strong>1. Is there any GST charge on UPI transactions?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">No, there are no GST charges specifically on UPI transactions themselves. However, the GST Council may consider imposing an 18% tax on payment aggregators for small transactions up to \u20b92,000.\u00a0<\/span><\/p>\n<h3><strong>2. What is the maximum amount transferable through UPI?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">As of 2026, the maximum amount that can be transferred through UPI is \u20b91 lakh per day. Additionally, UPI 123Pay has a per-transaction limit of \u20b910,000. However, these limits may vary depending on the bank and user-specific settings, with some banks imposing their own restrictions.<\/span><\/p>\n<h3 dir=\"ltr\" data-line-height-align=\"1.38\">3. How can I find my bank&#8217;s UPI transaction charges?<\/h3>\n<p dir=\"ltr\">Usually, for normal transactions, i.e. bank account to bank account-based UPI payments, there are no charges per NPCI. For PPI transactions, i.e. payments made through wallets or other prepaid instruments, there are interchange fees of up to 1.1% on transactions above Rs. 2,000 that are borne by merchants.<\/p>\n<h3 dir=\"ltr\" data-line-height-align=\"1.38\">4. How can I avoid or minimize UPI transaction charges?<\/h3>\n<p dir=\"ltr\">As a merchant, you can avoid or minimize UPI transaction or <a href=\"https:\/\/razorpay.com\/pricing\/\">payment gateway charges<\/a> by following these tips:<\/p>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\">Use bank account-based UPI payments instead of wallet-based ones. There are no charges for bank-to-bank UPI payments.<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">If you use wallet-based UPI <a href=\"https:\/\/razorpay.com\/payment-links\/\">payment links<\/a>, try to keep the transaction value below Rs. 2,000. The interchange fee of 1.1% is only applicable for transactions above Rs. 2,000.<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Negotiate with your UPI payment gateway or payment service provider to reduce the interchange fee or pass it on to the customer.<\/p>\n<\/li>\n<\/ul>\n<h3 dir=\"ltr\" data-line-height-align=\"1.38\">5. Are there any exemptions from UPI transaction charges?<\/h3>\n<p dir=\"ltr\">Yes. For normal bank-to-bank UPI transactions, there are no charges as per NPCI. Besides that, transactions below Rs. 2,000 do not attract interchange fees for payments made through wallets or other prepaid instruments.<\/p>\n<h3 dir=\"ltr\" data-line-height-align=\"1.38\">6. Can merchants pass on UPI transaction charges to customers?<\/h3>\n<p dir=\"ltr\" data-line-height-align=\"1.38\">Merchants have the option to pass on UPI transfer charges to customers as per the guidelines issued by the Reserve Bank of India (RBI).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Unified Payments Interface (UPI) was developed by the National Payments Corporation of India (NPCI) to facilitate seamless, real-time bank-to-bank transactions. With UPI, users can effortlessly transfer money to friends, pay utility bills, or make payments to merchants directly from their bank accounts using mobile apps. Today, UPI has become the go-to payment solution in<\/p>\n","protected":false},"author":151156506,"featured_media":11227,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1387],"tags":[1507,1516],"class_list":{"0":"post-9860","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-payments","9":"tag-upi"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/9860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156506"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=9860"}],"version-history":[{"count":51,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/9860\/revisions"}],"predecessor-version":[{"id":18861,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/9860\/revisions\/18861"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/11227"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=9860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=9860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=9860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}