Is there a fee for using UPI?

Most UPI transactions, including peer-to-peer and peer-to-merchant transfers between bank accounts, are generally free of charge. However, transactions over ₹2,000 made using Prepaid Payment Instruments (PPIs) are subject to a 1.1% interchange fee. This fee is typically paid by the merchant or wallet issuer, not the customer. Paytm, for instance, does not impose transaction charges for its UPI service.