Who should cover the costs of UPI transactions?

As most of us use UPI payments at merchants and online, keep in mind how much your bank charges for UPI transactions. UPI (Unified Payments Interface) is a virtual platform that allows users to send and receive money in real-time using VPA (Virtual Payment Address) and UPI PIN. It is the most popular and user-friendly payment option in Digital India due to its low cost. However, there has been a lot of press lately about the expected changes in UPI rates. UPI was created by the

National Payments Corporation of India (NPCI) and is powered by the Reserve Bank of India. Its main objective is to provide an instant payment system using the IMPS structure. It allows users to send and receive money in real-time. No bank account or other information is required for UPI transactions. Payments can only be made using UPI PIN and VPA or the recipient's mobile number. A UPI PIN, which is a 4-6 digit access code, is required for transactions. When you register in a UPI app, you need to create a UPI PIN for the app to work. Following Kotak Mahindra Bank, other banks started charging for UPI transactions in February 2020. Users may soon be charged for P2P transactions by banks such as HDFC, Axis, and SBI that provide UPI services. HDFC Bank has sent out a notification to its clients reminding them of the UPI transaction charges that will be calculated based on transaction volumes. Additionally, it will feature the same 20 free P2P transactions per user monthly cap. You will be charged for additional transactions even if the transaction is for Rs. 1001 or more. The date of implementation for these clauses is May 3, 2020.