The bank has sent an email to its customers notifying them about the new fees to be levied on all UPI transactions as well as the benefits of using UPI for transferring funds.
The email suggests that for a transaction amount of upto Rs 25,000, the fee will be Rs 3 plus taxes, and for a transaction amount of Rs 25,001 to Rs 100,000, the bank will charge Rs 5 plus taxes.
UPI is a payment system launched by National Payments Corporation of India (NPCI) to facilitate instant money transfers between two bank accounts on the mobile platform. It can be used for making both Person-to-Person (P2P) and Person-to-Merchant (P2M) transfers.
According to NPCI, banks may put charges on UPI transactions but only those pertaining to P2P transfers.
“…Person to Merchant (P2M) transactions in UPI will remain free to customers as per NPCI guidelines,” said Dilip Asbe, Chief Operating Officer, NPCI.
Country’s largest public sector bank, State Bank of India has also hinted at levying charges on UPI transfers but possibly after a couple of months.
“As of now we are not charging anything on UPI transfers but we could consider it in the coming 2-3 months. The revised service charges for online banking issued by the bank on 1 June does not include any charges on UPI transactions,” said Manju Agarwal, Deputy Managing Director of Corporate Strategy and New Business at SBI.