Does UPI charge transaction fees?

UPI transactions are generally free for customers, especially for personal peer-to-peer (P2P) and bank-to-merchant (P2M) transfers. However, an interchange fee of 1.1% applies to transactions exceeding ₹2,000 when made using Prepaid Payment Instruments (PPIs). This fee is absorbed by the merchant or wallet issuer, so customers do not have to pay this charge.