UPI has made money transfers in India quick, simple and accepted everywhere, right from grocery stores to online shopping. Yet, many users still wonder about UPI charges and possible hidden costs. What’s the daily limit? Are there any charges on a UPI transaction if you exceed it? And what do the new rules really mean for you?
Here’s a simple guide that explains all UPI payment charges, limits and fees. You’ll also find the full UPI transaction charges list. Plus, see how the latest UPI charges in India announced by National Payments Corporation of India (NPCI) affect your everyday transfers in 2026.
UPI Transaction Limit Per Day in 2026
The general UPI transaction limit per day in 2026 is ₹1 lakh, as per the latest guidelines from the National Payments Corporation of India (NPCI). However, NPCI has raised limits for specific categories to make high-value digital payments easier. The maximum UPI limit under these new rules can now go up to ₹10 lakh per day, depending on the payment category. These enhanced limits came into effect from 15 September 2025.
Here’s a quick look at the updated daily limits across categories:
| Category | Previous Limit | New Limit (from Sept 2025) |
|---|---|---|
| Travel bookings | ₹1 lakh | ₹5 lakh |
| Insurance payments | ₹2 lakh | ₹5 lakh |
| IPO or RBI Retail Direct investments | ₹5 lakh | ₹5 lakh |
| Government payments (tax/EMD) | ₹1 lakh | ₹5 lakh |
| Loan collections and EMIs | ₹2 lakh | ₹5 lakh |
The standard cap remains ₹1 lakh for most users. But banks can also set their own daily or monthly limits within NPCI’s guidelines. Here’s how the Bank-wise UPI daily limits look across popular banks:
| Bank Name | UPI Daily Limit |
|---|---|
| State Bank of India (SBI) | ₹1,00,000 |
| HDFC Bank | ₹1,00,000 |
| ICICI Bank | ₹1,00,000 |
| Axis Bank | ₹1,00,000 |
| IDFC FIRST Bank | ₹1,00,000 |
Some banks even set lower limits for daily transactions. You can check with your bank to know exactly how many transactions per day in UPI are enabled for you.
UPI Transaction Limit Per Week
There are many banks that also set weekly or monthly caps for UPI transactions. These internal limits help the bank manage security, transaction volumes and user activity across accounts.
This weekly limit varies from bank to bank and depends on factors such as your account type and usage history. Once you reach the limit, you can make more payments only after it resets automatically.
Despite these caps, UPI charges in India remain free for all users. Making sure that your transfers stay quick and cost-free.
Are UPI Transactions Free?
Yes, UPI is free for all basic uses. You can send money, receive payments or pay merchants directly from your bank account without any charges. This includes peer-to-peer and peer-to-merchant payments using UPI apps like PhonePe, Google Pay or Paytm.
Even scanning QR codes at shops or splitting bills with friends won’t cost you anything. Charges on UPI transactions apply only in special cases. For regular users, UPI continues to be a fast, secure and zero-cost option.
When Do UPI Transaction Charges Apply?
Regular UPI payments don’t attract any UPI charges. But in a few special cases, UPI payment charges might apply:
- Wallet payments above ₹2,000: If you pay a merchant through a wallet like PhonePe or Paytm, the merchant may be charged an interchange fee. You don’t have to pay this fee.
- Credit card wallet top-ups: If you use a credit card to add money to a wallet, the wallet platform may charge a fee. These are not UPI payment charges – they are more like a service charge.
- GST on platform fee: Some apps apply GST on the platform fee when using a credit card for wallet top-ups.
- Wallet app terms: A few wallet apps may add charges for premium features or transfers beyond a free limit. Always check their terms.
For most users, there are no UPI charges, even if you make multiple payments a day.
What is the Interchange Fee?
The interchange fee is a small charge applied only to wallet-based UPI payments. It helps wallet platforms cover the cost of processing and settling merchant transactions. This fee was introduced to support growing digital payment volumes.
- Purpose: It covers backend costs like payment routing, settlement and fraud prevention for wallet-based transactions
- Where it applies: Only when you pay a merchant using a prepaid wallet such as PhonePe, Paytm or Google Pay. Regular bank-to-bank UPI transfers remain completely free
- Fee range: Between 0.5% and 1.1%, depending on the type of service
Here’s a quick look at interchange fees by merchant category:
| Merchant Category | Interchange Fee |
|---|---|
| Fuel stations | 0.5% |
| Supermarkets / Grocery | 0.9% |
| Insurance premiums | 1.0% |
| Mutual fund transactions | 1.0% |
| Utilities | 0.7% |
| Education | 0.7% |
| Railways | 1.0% |
| All other merchants | 1.1% |
Please note that these fees are paid by the merchant to the wallet provider. As a customer, you pay nothing extra.
[Source: UPI Merchant Interchange Fee – ClearTax]
Who pays this fee?
The merchant will pay the interchange fee to the wallet app. It’s automatically deducted during settlement to help wallet providers manage their operational costs.
Do customers have to pay it?
No, customers don’t pay any interchange fees. The UPI transaction charges list applies only to wallet-based merchant payments. For all other users, UPI charges remain zero.
What is a Prepaid Payment Instrument (PPI) in UPI?
A Prepaid Payment Instrument or PPI is just a digital wallet. You can think of PhonePe wallet, Paytm wallet or Amazon Pay balance. You load money into it beforehand and spend from that balance.
The key difference from regular UPI? Normal UPI moves money directly from your bank account. A PPI wallet sits in between – you fill it up first, then pay from it. PPIs are regulated by the RBI and can be issued by both banks and non-bank companies. For everyday use, they work just like any other payment method – fast, simple and widely accepted.
[Source: PPI in UPI – RBI Guidelines]
What is the New Rule on UPI Transaction Charges?
Starting 3 November 2025, the NPCI introduced new UPI settlement rules. Authorised and disputed transactions are now settled separately to make processing faster and more accurate. Earlier, both types were handled together across 10 daily cycles. Now, authorised transactions will continue in 10 regular cycles, while dispute-related ones are settled twice a day.
| Cycle | Time | Type |
|---|---|---|
| I | 9 am – Midnight | Authorised |
| II | Midnight – 5 am | Authorised |
| III | 5 am – 7 am | Authorised |
| IV | 7 am – 9 am | Authorised |
| V | 9 am – 11 am | Authorised |
| VI | 11 am – 1 pm | Authorised |
| VII | 1 pm – 3 pm | Authorised |
| VIII | 3 pm – 5 pm | Authorised |
| IX | 5 pm – 7 pm | Authorised |
| X | 7 pm – 9 pm | Authorised |
| DC1 | Midnight – 4 pm | Dispute |
| DC2 | 4 pm – Midnight | Dispute |
These changes were meant to speed up settlements and reduce delays. Everything else, including timing, GST and reports, stayed the same.
UPI Operational Guidelines
Here are some of the key rules that govern how UPI works day-to-day:
- Daily transaction limit: ₹1 lakh per day for most users, up to ₹5 lakh for specific categories like travel, insurance and government payments
- Single transaction limit: Generally capped at ₹1 lakh per transaction, higher for select categories
- Minimum transaction amount: ₹1 per transaction
- Number of transactions: Most banks allow up to 20 UPI transactions per day, though this can vary
- UPI PIN required: Every transaction must be authenticated with a UPI PIN for security
- Bank account linking: You can link multiple bank accounts to one UPI app, but you can only set one as the primary account at a time
- PPI wallet payments: Interchange fee applies only on wallet-to-merchant UPI payments above ₹2,000 – all direct bank transfers remain free
- Failed transactions: If a transaction fails, the amount is auto-reversed within 24 to 48 hours as per RBI’s TAT guidelines
- Dispute settlements: Since November 2025, dispute-related settlements have been running on 2 separate daily cycles (DC1 and DC2) for faster resolution
- Regulatory oversight: UPI is governed by NPCI under the framework set by the Reserve Bank of India (RBI)
Regular users won’t see any difference and UPI charges in India will continue to remain free. But if you’re spending more online these days, it helps to use a card that rewards your spending. With the Fibe Axis Bank Credit Card — a RuPay card, you earn cashback on popular categories without any joining or annual fees. Download the Fibe App today to unlock a smarter way to spend!
FAQs on UPI Transaction Charges
1. Is there any charge on a UPI transaction?
No. Basic UPI transactions between bank accounts are free. However, there is a UPI transaction limit per month and it varies from one bank to another.
2. How many UPI transactions are free?
All UPI transactions are free for users. The interchange fee applies only to merchants when payments are made through wallets above ₹2,000. This rule does not affect regular users. So you can continue using UPI without worrying about maximum UPI transaction limit charges.
3. What is the new rule charge for UPI?
The new rule applies to wallet-based UPI merchant payments above ₹2,000. A 1.1% fee is charged to the merchant, not the user. This does not affect the transaction limit of UPI for regular bank account transfers.
4. What is the limit of UPI per day?
The standard UPI transaction limit per day is ₹1 lakh. However, NPCI has increased this to ₹5 lakh for specific categories like travel bookings, insurance payments, government payments and loan EMIs. Your bank may also set its own internal limits.
5. Is there tax on a UPI transaction?
No, there is no tax charged directly on a UPI transaction for regular users. If you’re using a credit card to top up a wallet, some apps may apply GST on the platform fee. But that’s a service charge from the app, not a tax on the UPI transfer itself.