What are UPI charges?

Standard UPI transactions made from one bank account to another are completely free for customers. There are no charges for person-to-person or person-to-merchant transfers. However, NPCI has introduced interchange fees for specific merchant transactions:

• Interchange fees of 0.5% to 1.1% apply only to merchant payments above 2,000 made using Prepaid Payment Instruments like digital wallets.
• These fees are paid by the merchant and are not charged to the consumer.
• Small shopkeepers and routine bank-to-bank transfers remain exempt from these costs.