Is UPI transaction chargeable from April 2023?

UPI transactions image

What is UPI?

The National Payments Corporation of India (NPCI) develops the unified Payments Interface (UPI). It allows users to transfer funds between bank accounts using their mobile phones.

The fake news of UPI charging for the transaction above ₹2000 from April 1, 2023?

The misleading tweet by Jaimini, of the NPCI guidelines.

The tweet misleading the NPCI guidelines
The tweet misleading the NPCI guidelines

Tweet by the Finance Ministry clarifies the guidelines given by the NPCI for UPI.

The tweet by Finance Ministry clarifying the guidelines
Finance Ministry clarifying the guidelines

The tweet viral from the tweeter handler name, “Jaimini,” is misleading checked by the PIB fact checker on Twitter. And the circular of NPCI is for the PPI transaction, not the UPI.

What is the circular from NPCI?

Starting April 1, merchant transactions exceeding ₹2,000 in value done using Prepaid Payment Instruments (PPI Wallets) on UPI will attract an interchange charge of 1.1%. However, the National Payments Corporation of India (NPCI) governs UPI stating, “the new interchange charges are only applicable for the PPI merchant transactions and there is no charge to customers. The Interchange charge is to cover the transaction cost with the use of card payments.

The reality behind the circular-

Guidelines from the NPCI regarding UPI payment from April,1 2023.

How does PPI differ from UPI transactions?

PPI transactions use prepaid payment methods like mobile wallets, gift cards, and other online payment methods, whereas UPI transactions are real-time transfers between two bank accounts. PPIs are frequently used for bill payments, online shopping, and other activities, while UPI is mainly used for peer-to-peer transfers and merchant payments. In comparison to PPI, UPI also has a higher payment limit.


According to media sources, NPCI published a circular stating that there will be a 1.1 percent interchange charge for UPI transactions using PPI instruments such as wallets or cards. The fees will only apply to transactions over Rs 2,000. So, it is proved that the information provided by the tweets earlier are misleading, and UPI is not charging any fees from the user’s end.

Also, you can read our latest 2023 Indian Budget provided simply and authentically.

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