Is a UPI payment free?

Yes, UPI payments are currently free for all personal transactions. According to the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI), users do not pay any charges for:

• Bank-to-bank transfers for individuals (P2P).
• Payments to merchants made directly from a bank account (P2M).
• UPI Lite payments for small-value transactions.

While an interchange fee may apply to merchants for wallet-based transactions above 2,000 Rupees, this cost is borne by the merchant and does not affect the end user.