The much loved online mode of the transaction will be charged as soon as from May 1, 2019. Unified Payment Interface the only zero modes of transfers that provide a much easier and smoother way for many transactions and money transfers will now cost you soon. All the banks will soon join this race!!
Kotak Mahindra imposing charges on transactions
Kotak Mahindra Bank is the first one to charge for transactions through UPI, P2P that includes money transfer using the bank account number and IFSC. However, for first 30 transactions is free as stated by Rohit Rao, Kotak Mahindra Bank’s Chief Communication Officer. Each transaction made via UPI for the amount below or equal to Rs 1000 will be charged with Rs2.50 and amount above Rs1000 will charge with Rs 5 including 18% GST charge leveled as well for every transaction after crossing monthly 30 free transactions.
Charges applicable on Paytm, Phone Pe, Google Pay
The highest number of UPI transaction being made via Paytm, Phone Pe, Google Pay, Bhim and rest will impose all the above charges. Paytm leading with the highest number of transactions as 221 million, Google Pay and Phone Pe with 220 million transactions but BHIM is only with 14-18 million transactions is not been able to leave its impact.
There are about 139 banks offering online transactions through UPI payment. All the reputed banks like SBI, ICICI, HDFC, etc will be going down the same lane as Kotak Mahindra as reported by sources within the banking industry.
UPI: Conducive Way of Fund Transfers?
Rao stated that the bank still encourages the people to opt for UPI payments. This rule is made to prevent abuse of the UPI system and will not impact genuine customers as receiving money through UPI as well as merchant transactions is still free! However, the NPCI has yet not commented on these new and irrelevant changes on UPI transactions.