UPI Transaction Charges 2026
UPI is free for regular person-to-person (P2P) and person-to-merchant (P2M) transactions. Charges apply differently for banks, payment service providers, and merchants. Here is the official NPCI framework.
UPI is FREE for Customers
As per NPCI and RBI policy, UPI transactions are free of charge for end-users (customers) — whether person-to-person (P2P) or person-to-merchant (P2M). Banks cannot charge customers for UPI transactions.
NPCI UPI FAQMerchant / PPI Wallet Charges
NPCI introduced an interchange fee framework for Prepaid Payment Instrument (PPI)-based UPI transactions (e.g., Paytm Wallet, Airtel Money). These charges apply to the merchant — not the customer. Standard bank-account UPI transactions remain free even between different banks.
P2P (Bank to Bank)
Free
N/A
P2M (Bank to Merchant)
Free
Free (MDR = 0 per RBI/NPCI policy)
P2M (PPI Wallet to Merchant)
Free
Interchange applies per NPCI circular
Source: NPCI UPI FAQ and RBI payment system policy. Charge frameworks are subject to change by NPCI/RBI.