UPI Payment New Rule: Now more payment can be charged than limit! – StudyToperC

In the world of digital payments, UPI (Unified Payments Interface) has made the money transactions very easy in India. In today’s time, almost every person sends or receives money from his mobile through UPI apps like PhonePe, Google Pay, Paytm etc. Whether it is a grocery store, online shopping, or sending money to a friend – everything is possible with UPI. But now some new rules have been implemented in 2025, which will have to be a little cautious to those who transfer a large amount from UPI.

The government and NPCI (National Payments Corporation of India) have made new rules regarding the limit and charge of UPI transaction. Now if you make UPI payment more than a fixed limit, then some cases may be charged. In this article, we will know in detail what is the UPI Payment New Rule, who will have to pay, who is not, and what is important to take care of. Also, we will tell you updates related to UPI limit, new charge, bank rules, and GST.

UPI Payment New Rules 2025: limit, fee and guidelines

Under UPI Payment New Rule 2025, UPI payment can now be charged under certain circumstances. In particular, when you transfer more amount than a limit, and that too through prepaid payment instruments (PPI) like Paytm Wallet, PhonePe Wallet, Amazon Pay etc., then interchange fees will be applicable. This charge will not be directly on the customer, but on the merchant (which is getting payment). Come, let’s see an overview in the table:

The main point of UPI Payment New Rule

• PPI (Wallet) transactions above ₹ 2,000 will cost interchange fees.
• There is no charge on bank-to-bank UPI transfer.
• This charge will be levied on merchant, not on the customer.
• The transaction limit may vary according to the bank.
• The limit on certain transactions (eg tax, education, health) is up to ₹ 5 lakh.
• The GST charge is currently under consideration, but has not been implemented.

UPI Transaction Limit and Charges (What’s New in 2025?)

The limit of UPI transaction may be different according to every bank and platform, but NPCI has set a basic limit of it. Generally, up to ₹ 1 lakh a day can be transferred from UPI.

In certain cases (such as tax, education fees, healthcare bills) this limit goes up to ₹ 5 lakh. If you use UPI 123pay, you can send up to ₹ 10,000 in a transaction.

UPI transaction border table:

UPI Payment Charges: When and how will the charge be charged?

According to the new rules of 2025, if you pay more than ₹ 2,000 to a merchant from PPI (Wallet) like Paytm Wallet, PhonePe Wallet, Amazon Pay etc., then interchange fees will be charged. This fee can range from 0.5% to 1.1%, which depends on the type of transaction:

• Fuel Payment: 0.5%
• Post Office, Telecom, Utility, Agriculture, Education: 0.7%
• Supermarket: 0.9%
• Insurance, Government, Railways: 1.0%
• Other: Maximum 1.1%

Important thing: This charge is not taken from the customer, but is taken from the merchant i.e. shopkeeper or service provider. There is no charge on bank-to-bank UPI payment for the customer.

Who will affect the UPI Payment New Rule?

1. Customer:

• If you make UPI payment directly from your bank account, then you will not have to pay any charge.
• If you pay more than ₹ 2,000 from the wallet (PPI), then the charge will not be on you, but the merchant will be charged.
• There is no charge on personal transfer (sending money to friend/family).

2. Merchant:

• If you take more than ₹ 2,000 payment from the wallet, then you have to pay the interchange fee.
• There is no charge on taking bank-to-bank UPI payment.
• No charge on small merchants (transactions less than ₹ 2,000).

3. Bank and Wallet Provider:

• No charge on bank-to-bank transactions.
• The wallet provider will get interchange fees, which will be charged from the merchant.

UPI Payment New Rule 2025: GST and Taxation Update

Recently, it is under discussion that the government is considering imposing GST on UPI transactions. If this rule applies, then UPI transaction of more than ₹ 2,000 may cost 18% GST. However, this rule has not yet been implemented, only under consideration. If applied in the future, it can affect both bank-to-bank and wallet transactions. Currently, there is no GST on UPI transaction.

UPI Payment Limit and Charges: According to banks and apps

The limit and charge of each bank and UPI app may be slightly different. Below is the overview of some popular UPI apps:

How to avoid UPI Payment Charges? (Tips for users)

• Always pay bank-to-bank UPI, not from wallet.
• If you want to pay with a wallet, try to do less than ₹ 2,000.
• If there are merchants, then accept bank-to-bank payment, wallet payment may be charged.
• Keep checking your bank’s UPI limit and rules from time to time.
• If you are paying a large amount (eg education fees, tax, health), then take care of special limits.

UPI Payment New Rule 2025: Benefits and Damage

Benefits:

• Transparency in digital payments will increase.
• No charge on bank-to-bank transaction, relief to common user.
• No effect on small merchants and transactions.
• Regulation in wallet transactions will strengthen the system.

Loss:

• Merchant will have to pay interchange fees on wallet payment.
• If GST is applied in future, tax may increase on large transactions.
• Some users may cause problems due to the limit.

Often asked questions related to UPI Payment New Rule 2025 (FAQs)

Q1. Does sending money from UPI charge?
No, if you transfer bank-to-bank UPI, there is no charge. The merchant will have to pay charge on a payment of more than ₹ 2,000 from the wallet.

Q2. Is GST UPI applicable to transactions?
Not currently, but GST may be implemented on transactions of more than ₹ 2,000 in future.

Q3. How many times a day can you do UPI transactions?
A maximum of 20 times (may be different according to the bank) and a limit of up to ₹ 1 lakh.

Q4. What to do if you want to pay more than the limit?
If your payment is more than the limit, then transfer and transfer the limit of the bank. The limit for special transactions (eg tax, education, health) is up to ₹ 5 lakh.

Q5. How will the merchant pay interchange fees?
If a customer pays more than ₹ 2,000 from the wallet (PPI), then the merchant will have to pay an interchange fee from 0.5% to 1.1%.

UPI Payment New Rule 2025: What can change in future?

• The UPI limit may increase further, which will make large payments easier.
• GST is likely to be implemented, which may increase taxation.
• Interchange fee structure may change, which can relieve merchants.
• New features can come to make digital payments more safe and fast.

conclusion

Under the UPI Payment New Rule 2025, now more than the limit can be charged in certain circumstances, but the bank-to-bank UPI payment for the common user is still free. If you pay more than ₹ 2,000 from the wallet, then the merchant will have to pay the interchange fee. The GST is not applied at the moment, but may be in the future. Therefore, always check the rules of your bank and UPI app, and use digital payments smart.

Disclaimer:
This article is only for information. Under the UPI Payment New Rule 2025, no additional charge has been levied on customers so far, only merchants have to pay interchange fees at a transaction of more than ₹ 2,000 from the wallet. The GST charge is currently under consideration, but has not been implemented. Please check the latest updates of your bank or UPI app.

These rules are completely real and are implemented by NPCI, but bank-to-bank UPI transfer is still free for common users. Avoid any rumor or wrong information and trust the official updates only.