HDFC Bank to charge for UPI transactions from 10 July
New Delhi: HDFC Bank Ltd, one of India’s largest private sector banks, will start charging its customers for transactions made via the Unified Payments Interface (UPI) from 10 July.
HDFC Bank sent emails to its customers late on Monday informing them about the new fees to be imposed on all outward UPI transactions as well as the benefits of using UPI for transferring funds.
According to the email, for a transaction amount of upto Rs25,000, the fee will be Rs3 plus taxes, and for a transaction amount of Rs25,001 to Rs100,000, the bank will charge Rs. 5 plus taxes.
UPI, a payment system launched by National Payments Corporation of India (NPCI), facilitates instant fund 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 levy 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.
State Bank of India, the country’s largest public sector bank, 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.