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Is era of free UPI transactions over?

Pranav Pranav Follow Mar 29, 2019 · 1 min read · 0 comments
Is era of free UPI transactions over?

UPI got huge push from government after demonetization of all Rs. 500 and Rs. 1000 banknotes on 8 November 2016. Most of the banks, though charge for NEFT/RTGS, UPI has been free, until recently, when Kotak Mahindra put a cap on number of free UPI transactions.

According to email received from Kotak Mahindra Bank, following changes are being introduced for UPI transactions:

  • 30 UPI transactions free every month
  • Rs. 2.5/- for transactions up to Rs. 1000/- & Rs. 5/- above Rs. 1000/- after 30 free transactions
  • Merchant payments, online shopping, bill payments etc. done via UPI remain free and won’t be considered under UPI fund transfers
  • Changes effective from 1 May 2019
  • FAQs


30 is a considerable number and in most practical cases we won’t cross this as merchant payment etc. are not included. I have a hunch that this number will be reduced further in future just like free ATM cash withdrawals.

I don’t see any immediate effect of this change, however we should be cognizant of the fact that change is imminent and the day is not far when all banks will start charging for UPI transactions. What are your thoughts?

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Written by Pranav Follow
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