Is UPI transfer free?

Yes, UPI transfers are generally free for individual users. According to NPCI and RBI guidelines, person-to-person transfers and bank-to-bank merchant payments incur zero charges for customers regardless of the transaction amount. While an interchange fee may apply to specific merchant transactions over 2,000 rupees when using prepaid instruments like digital wallets, this fee is borne by the merchant or issuer and not the customer. The government maintains a zero Merchant Discount Rate (MDR) policy to keep UPI accessible and free for all everyday users.