Amid growing concerns online, the National Payments Corporation of India (NPCI) has clarified that UPI transactions will not incur charges for amounts above ₹1,000. Rumours suggesting extra fees have caused confusion among users, but the NPCI confirmed that both person-to-person (P2P) and person-to-merchant (P2M) payments remain free. The organisation urged the public to rely only on official sources to avoid spreading misinformation that could slow down India’s digital payment adoption.
Daily Transaction Limits and Charges
UPI continues to offer high flexibility for both individuals and businesses. Standard users can transfer up to ₹1 lakh per day, while business accounts enjoy a higher limit of ₹5 lakh.
Although most UPI transfers are free, service charges apply in some cases, such as for electricity bills and other utility payments. To support small merchants and boost digital payments, the government recently allocated ₹2,000 crore in the budget for the UPI ecosystem. This initiative helps reduce the burden of Merchant Discount Rate (MDR) charges on small traders.
Why UPI Remains the Preferred Payment Method
The Unified Payments Interface (UPI) has revolutionised payments in India. Its simplicity—using QR code scans or phone number transfers—has made it a preferred method for transactions at street-side shops, grocery stores, and large shopping malls. As a result, UPI transaction volumes have skyrocketed, reflecting the country’s rapid shift toward a cashless economy.
By addressing the rumours around transaction charges, NPCI aims to reassure users and maintain trust in the system, ensuring that digital payments continue to grow across India without obstacles.
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