Does UPI apps charge for transactions?

Most UPI transactions for individuals are free of charge, including direct bank-to-bank transfers (P2P) and peer-to-merchant (P2M) payments. However, an interchange fee of up to 1.1% applies to merchants for transactions exceeding ₹2,000 if the payment is made using a Prepaid Payment Instrument (PPI), such as a prepaid wallet. Customers do not pay this fee. Using UPI on platforms like Paytm is completely free for users.