A message regarding online transactions is rapidly going viral on social media and WhatsApp, claiming that a new charge will now be levied on every UPI transaction over ₹2,000. This news has many people worried. However, this is merely a claim, and the reality is something else.
Truth behind viral message on social media
Online bank-to-bank UPI transfers are free for the average customer, but a rumor has spread on social media that merchant interchange fees are being mistaken for customer charges.
Do you know what the ₹2000 rule actually is?
Merchant Payments (from PPI Wallets): If you make a payment of more than ₹2000 to a merchant using wallets like Paytm, PhonePe or Amazon Pay, there is a 1.1% interchange charge.
What is the truth, who has to pay the charge?
If you investigate the viral message on social media regarding UPI payment, you will find that example: Payment of ₹2500 → Merchant will pay a fee of ₹27.5.
Bank-to-Bank UPI: No charges on transactions made directly from a bank account.
Impact on the general consumer
Always free bank-to-bank UPI transfers to family, friends or rent.
Whether the transaction is for ₹10,000 or ₹50,000, the customer does not have to pay any charges.
Know when this fee is charged?
Whenever merchant payments are made through PPI wallet only.
0.15% service charge on wallet recharge (above ₹2000) is borne by the wallet company, not the customer.
UPI transaction limit 2026
Regular users: ₹1 lakh per day
Education, medical, insurance, government payments: ₹5 lakh per transaction (effective from September 15, 2025)
What experts say
The success of UPI lies in its free and easy digital payments, so policymakers don't charge customers.
Consumers are requested not to believe viral messages.
When making a payment, check in the app whether the money is being deducted from your bank account or wallet. Bank-to-bank UPI is always free. Always be vigilant and alert against false and inflammatory news.
