The National Payment Corporation of India (NPCI) has started to levy the 1.1% Charges on UPI Transactions above ₹2000/- from 1st April 2023 only on merchant not on customer. As per new update on news and clarification by NPCI, UPI Transaction Charges from 1st April 2023 will be upon the merchant and not on the customers. However, it is also being said that if you use the Banking App for Digital Payments then there will be no charges on the transaction. Now people are very confused about the UPI Transaction Fees 2023 which will be charged upon the end user.
As per new UPI New Guidelines 2023 effective from 1.04.2023, if you do the transaction of Rs 2100 from the customer using GPay or Paytm or Bharatpe or any other UPI App then you have to pay Rs 22 as surcharge on the transaction. People are very furious at this move of the Government and some are also supporting it because it will help in the development of the country. We suggest you briefly go through this post and check the UPI Charges from 1st April 2023 along with other details.
This fees is known as Prepaid Payment Instrument Fees which is being levied on merchants.
UPI Transaction Charges 2023
As we are aware that the Government of India and the Department under it known as National Payment Corporation of India controls the exchange of digital payments in India. Now if you are also among the merchant who uses the Gpay, Phonepe, Amazon Pay, WhatsApp Pay then kindly note that if you pay ₹2000/- from 1st April 2023 then kindly note that UPI Transaction Charges 2023 are 1.1%. As per latest guidelines, the customer doesn’t need to pay the amount but the merchant will pay this surcharge.
However, the exact solution for this problem is that you can use the Banking App to Scan QR Codes and pay digitally which will be free of cost. You can simply request your Bank to open the Merchant Account and then use the basic details to get the QR Code for your Shop. You can find the UPI Transaction Fees 2023 here and then get to know about the fees which you need to pay for each transaction above Rs 2000/-.
UPI Transaction Charges from April 2023
- The NPCI has clarified in the Twitter post that from 1st April there will be charges on the Transaction above Rs 2000/-.
- Secondly, you should know that these transactions are payable by Merchant as per UPI Transaction Charges from 1st April 2023.
- However, complete guidelines are yet to be revealed because this was made clear after the queries were raised regarding the concern.
- Total 1.1% Fees will be levied upon the transactions above the UPI Free Limit 2023.
- You can check the Transaction Fees in the section below for each merchant and about the solutions of this problem.
UPI Free Limit GPay, PhonePe, PayTM, BharatPe
| News Name | UPI Transaction Charges from 1st April 2023 |
| Implemented by | National Payment Corporation of India |
| Transaction Charges | 1.1% on Transactions above Rs 2000/- |
| Effective From | 1st April 2023 |
| UPI Free Limit 2023 | ₹2000/- on Merchant ₹0/- on Customer |
| GPay Free Limit 2023 | ₹2000/- on Merchant ₹0/- on Customer |
| PhonePe Free limit 2023 | ₹2000/- on Merchant ₹0/- on Customer |
| BharatPe Free Limit 2023 | ₹2000/- on Merchant ₹0/- on Customer |
| PayTM UPI Free Limit 2023 | ₹2000/- on Merchant ₹0/- on Customer |
| Article Category | Tech |
| Portal | Discussed Below |
As we know, Unique Payment Interface is one of the biggest revolutions in India and among the other parts of this world. Many people are enjoying this easiest mode of transaction from the Mobile. Now the UPI Free Limit for Gpay, Phonepe, Paytm, BharatPe is fixed now and it is ₹2000/-. If you wish to transfer or do a transaction of more than this amount then you have to pay 1.1% from your account. Now the NPCI is saying that these fees will be charged from the Merchant and not on End Consumer which is the payee.
UPI Transaction Guidelines 1st April 2023
- The New UPI Transaction Guidelines 1st April 2023 are effective from the coming days and this is the tension among the users.
- As per new UPI Guidelines, you need to pay Rs 1.1% for every transaction above ₹2000/-.
- You must use the Banking App or UPI App of your Bank to avoid these charges and they will offer it free of cost.
- This new surcharge is called PPI which means Prepaid Payments Instruments Fees and it will be implemented above ₹2000/-.
- More than 8 Crore UPI users are tensed due to this decision of National Payment Corporation of India.
UPI Transaction Fees 2023
| Amount | UPI Transaction Fees 2023 (Not for Customer) |
| Rs 2000/- | Rs 22/- |
| Rs 3000/- | Rs 33/- |
| Rs 4000/- | Rs 44/- |
| Rs 5000/- | Rs 55/- |
| Rs 6000/- | Rs 66/- |
| Rs 10,000/- | Rs 110/- |
| Rs 20,000/- | Rs 220/- |
| Rs 30,0000/- | Rs 330/- |
| Rs 40,0000/- | Rs 440/- |
| Rs 50,000/- | Rs 550/- |
- This limit is fixed by NPCI and you have to pay this amount on the transactions as mentioned above.
- This surcharge is fixed at 1.1% of the amount which you transfer above ₹2000/- using UPI.
- We have mentioned the amount or fees for the important transactions in the section above for your reference.
UPI Transaction Charges 2023 Solutions
There are many solutions for the UPI Transaction Charges 2023 which we have discussed in this section. If we follow the rules as per NPCI then you have to use the Banking App or UPI App to pay the merchant then you will be able to save these charges. Make sure you use the HDFC banking app, ICICI Banking App or SBI Banking App to scan the QR Codes and then pay from your bank account. If you wish to use the other 3rd Party Payment Apps then you have to pay 1.1% from your Account for the transactions above ₹2000/-. We suggest that you download the official banking app and then pay using these portals. You will definitely save a huge amount by using the Official UPI App.
FAQs on UPI Charges 2023
- When is the UPI Charges 2023 Applicable?
- UPI Transaction Charges 2023 will be effective from 1st April 2023.
- How much transaction is free of UPI Charges 2023?
- If you transfer below ₹2000/- then you are free of UPI Charges.
- What is the Method to Avoid UPI Transaction Fees from 1st April 2023?
- You can use the official banking app to avoid the UPI Fees from 1st April 2023.