ICICI, HDFC, Axis Bank Charging Upto Rs 5 Per UPI Payment: UPI Not Free Anymore?

ICICI, HDFC, Axis Bank Charging Upto Rs 5 Per UPI Payment: UPI Not Free Anymore?
ICICI, HDFC, Axis Bank Charging Upto Rs 5 Per UPI Payment: UPI Not Free Anymore?

Although Govt has always said and assured that UPI payments, money transfers will be free, but it seems that this is not the reality anymore.

Private banks like ICICI Bank, HDFC Bank, Axis Bank and others are charging upto Rs 5 per UPI money transfer and payments.

What exactly is happening here?

Private Banks Are Charging UPI Transactions

IIT Bombay has published a report, wherein they have claimed that private banks have now started charging for UPI transactions.

The report mentions charges upto Rs 5 for each UPI transaction, above the free ones.

It seems that 20 free transactions are being provided every month, and above that, banks are charging fees.

As per the report, UPI payments are free, but the transfers are not.

How Much Is The Fees For Using UPI Now?

Once 20 free UPI transfers and payments are done, this is the way banks are charging extra fees:

ICICI Bank:

Rs 2.5 per UPI transaction upto Rs 1000

Rs 5 per UPI transaction above Rs 1000

HDFC Bank

Rs 2.75 per UPI transaction upto Rs 1000

Rs 4.75 per UPI transaction above Rs 1000

Axis Bank

Rs 2.5 per UPI transaction upto Rs 1000

Rs 5 per UPI transaction above Rs 1000

Kotak Bank

Rs 2.5 per UPI transaction upto Rs 1000

Rs 5 per UPI transaction above Rs 1000

Why Banks Are Charging Money For UPI?

The IIT reports quotes Section 10A of the Payment and Settlement Systems (PSS) Act, which clearly states that UPI money transfers and payments are free.

The rule says, no bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving payment by using the electronic modes of payment prescribed under section 269SU of the Income Tax Act, 1961”. 

However, it seems that some users are making unnecessary UPI transfers to avail points and coupons from UPI apps, and this move to charge UPI transactions above 20 per month is a move to stop this.

We will keep you updated, as more details come in. 

Comments are closed, but trackbacks and pingbacks are open.

who's online