India’s click-and-pay UPI services will attract a fractional charge above Rs 2,000 payments, though all person-to-person transactions will remain free irrespective of transaction value, the country’s payments body has notified.
In essence, if you make a transaction above Rs 2,000 at a merchant, that entity will incur a 0.4 per cent charge with a cap of Rs 300.
In case you send money to your friend via UPI, referred to as a person-to-person transaction, it remains free no matter how big the value is.
A flat rate of Rs 5 will be levied on UPI payments above Rs 2,000 in specified merchant categories such as railways, telecom services, insurance, and fuel, the NPCI added.