Banks to slap charges on P2P payments on UPI
DSIJ Intelligence / 07 Jun 2017
For the transaction up to Rs 1 lakh SBI will be charging Rs 5, and for a transaction between Rs 1-2 lakh, Rs 15 will be charged and for those between Rs 2 lakh- 5 lakh Rs 25 will be charged by the bank. In HDFC Bank, for transactions up to Rs 25,000 Rs 3 will be charged and Rs 5 for the transaction between Rs 25,000 – Rs 1 lakh.
After the two years of its operation of Unified Payment Interface (UPI), now banks have decided to charge payment for peer-to-peer on the UPI. Unified Payment Interface is a payment system which facilitates the instant transfer of fund between two bank accounts on the mobile platform. It was launched by National Payments Corporation of India (regulated by RBI).
SBI, country’s largest public sector bank has announced that they are charging some amount on UPI and it will be effective from June 1. Along with SBI, HDFC has also cleared it that from July 10, 2017, they will also start charging for the transaction made via UPI from its customers.
For the transaction up to Rs 1 lakh SBI will be charging Rs 5, and for a transaction between Rs 1-2 lakh, Rs 15 will be charged and for those between Rs 2 lakh- 5 lakh Rs 25 will be charged by the bank.
In HDFC Bank, for transactions up to Rs 25,000 Rs 3 will be charged and Rs 5 for the transaction between Rs 25,000 – Rs 1 lakh.
Yet, it was not cleared that peer to peer transaction charges will also be applicable in BHIM App ( launched by Prime Minister Narendra Modi) or not. Bharat Interface for Money (BHIM) is a mobile app based on UPI.