UPi  Charges :

 

UPI Payment Charges News Update: The Government is not considering any charges on UPI services, the Ministry of Finance today clarified. The Ministry said that the concerns of the UPI service providers for cost recovery would have to be met through other means. It also noted that UPI is a digital public good with immense convenience for the public and productivity gains for the economy.

UPI is a digital public good with immense convenience for the public & productivity gains for the economy. There is no consideration in Govt to levy any charges for UPI services. The concerns of the service providers for cost recovery have to be met through other means. The Govt had provided financial support for #DigitalPayment ecosystem last year and has announced the same this year as well to encourage further adoption of #DigitalPayments and promotion of payment platforms that are economical and user-friendly,” the Ministry of Finance said in a series of tweets.

RBI has not issued instructions regarding charges for UPI transactions. The Government has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020… This means that charges in UPI are nil for users and merchants alike. Keeping in view that the intent of this discussion paper is to elicit general feedback, a few questions on what approach should be adopted, have been included,” RBI said in its ‘Discussion Paper on Charges in payment Systems’.

Is there charges for UPI transactions?
In fact the paper notes, “RBI has not issued instructions regarding charges for UPI transactions. The Government has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020 (paragraph 7.6). This means that charges in UPI are nil for users and merchants alike.

How many transactions are free in UPI per day?
In most of the cases, the maximum number of UPI transactions is limited to 20. Although the transaction limit per UPI transaction is ₹1 lakh, the upper limit depends on bank-to-bank. Therefore, the upper limit could be between ₹10,000- ₹1 lakh. The transaction limit per day for UPI transaction is ₹1 Lakh.

What is UPI limit per day?
Daily limits
You may reach a daily limit if: You try to send more than ₹1,00,000 in one day across all UPI apps. You try to send money more than 10 times in one day across all UPI apps. You request more than ₹2,000 from someone.

Will UPI be free forever?
The service is completely free of cost, as of now. Since January 1, 2020, the government had made it free in a bid to promote digital payment transactions and discourage cash economy.

How do banks earn from UPI?
It's very simple. If you are sending money from A Bank to B Bank and your account is in A Bank. A Bank will pay Rs 0.5 for NPCI as switching fee and 0.5 Rs for A banks account being debited. Since B Bank has to pay funds immediately to its customer before the settlement to B Bank by A Bank on next working day.

Is UPI a government?
9) In India, the RTGS and NEFT payment systems are owned and operated by RBI. Systems like IMPS, RuPay, UPI, etc, are owned and operated by the National Payments Corporation of India (NPCI). 10)The government has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020