Brandon Lee
Unified Payment Interface (UPI) has become a popular method for digital transactions in India due to its convenience and low cost. While UPI transactions are traditionally free, some banks have recently started charging for UPI transactions after a certain number of free transactions per month. Axis Bank, for example, has informed its customers that it will impose a transaction fee on UPI transactions of Rs. 1000 or more after 20 free transactions per month. This shift in UPI rates has raised questions about the potential charges for using UPI across different banks.
| Characteristics | Values |
|---|---|
| Bank-to-bank transactions | Free |
| Transactions involving PPIs | Interchange fee, usually paid by merchants |
| Maximum transaction limit for debit fund transfer/P2P through BHIM Axis Pay | INR 1,00,000 per transaction |
| Overall transaction limit within 24 hours for BHIM Axis Pay | INR 1,00,000 including all linked accounts |
| Number of P2P debit transactions allowed within 24 hours for BHIM Axis Pay | 20 |
| New user transaction limit for Android users | INR 5,000 within 24 hours from registration |
| New user transaction limit for iOS users | INR 5,000 within 24 hours for 3 consecutive days (72 hours) from registration |
| Number of transactions from linked Axis Bank RuPay Credit Card on UPI | Unlimited |
| Charges for linked Axis Bank RuPay Credit Card on UPI | Free |
| Charges for UPI transactions after 20 free transactions per month | Rs. 1000 or more |
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What You'll Learn
- UPI transactions are free of cost, but some transactions may involve interchange fees
- Axis Bank's Mobile Banking app offers a secure platform for UPI payments
- UPI transactions are authenticated by 2FA and require a UPI PIN
- Axis Pay app allows users to send and receive money using a Virtual Payment Address/UPI ID
- Axis Bank RuPay Credit Cards can be linked to any UPI app
UPI transactions are free of cost, but some transactions may involve interchange fees
Unified Payment Interface (UPI) transactions are popular due to their zero-cost feature for users. This means that for most everyday transactions, such as paying friends or making small purchases, you won't face any UPI payment charges. However, traditionally peer-to-peer UPI transactions have been free, and some banks have started to charge for UPI transactions after a certain number of free transactions per month.
Axis Bank, for example, offers a seamless, safe, and secure digital payment method to make credit card transactions with ease. There is no charge for linking or carrying out transactions from a linked Axis Bank RuPay Credit Card on UPI. However, there is a maximum transaction limit for debit fund transfer/P2P (person-to-person) through BHIM Axis Pay of INR 100,000 per transaction.
UPI transactions are also free of cost when using Axis Bank's Mobile Banking app for instant money transfers, mobile recharges, and DTH recharges. However, charges may be applied by the mobile/DTH operator.
While UPI transactions are generally free of cost, there may be certain scenarios where interchange fees come into play. For example, when using Prepaid Payment Instruments (PPIs) such as e-wallets, prepaid cards, or mobile wallets in conjunction with UPI, a service provider might charge an interchange fee. These fees are typically borne by merchants rather than customers.
It's important to note that UPI transaction charges can vary between banks, and it's always a good idea to check with your bank for the most up-to-date information on transaction fees and limits.
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Axis Bank's Mobile Banking app offers a secure platform for UPI payments
Unified Payments Interface (UPI) has become a popular way of handling digital payments in India due to its convenience and low cost. While traditionally, peer-to-peer UPI transactions have been free, some banks have started charging for UPI transactions after a certain number of free transactions per month.
Axis Bank offers a secure and user-friendly Mobile Banking app for UPI payments, instant money transfers, mobile recharges, and DTH recharges. The app provides a seamless and safe digital payment method for credit card transactions, allowing customers to make payments with ease. Axis Bank's Mobile Banking app is a UPI-enabled app, similar to BHIM, Google Pay, and PhonePe. Users can send or receive money using a virtual payment address (VPA), mobile number, or QR code.
To use the app, users must register with their mobile number and complete the verification process. They can then link their bank account and set a UPI PIN to authorise transactions. The maximum transaction limit for debit fund transfer/P2P through the app is INR 1,00,000 per transaction, with an overall transaction limit of INR 1,00,000 within 24 hours for all linked accounts.
Axis Bank also offers a BHIM Axis Pay app, which is a secure UPI option for money transactions using VPA. With BHIM Axis Pay, users can add any bank account enabled on UPI and set a UPI PIN for each linked account. There is no limit to the number of transactions carried out from a linked Axis Bank RuPay Credit Card on UPI, and there are no charges for linking or transacting with the card.
Overall, Axis Bank's Mobile Banking app provides a secure and user-friendly platform for UPI payments, offering a hassle-free and cost-effective way to handle digital payments.
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UPI transactions are authenticated by 2FA and require a UPI PIN
Unified Payments Interface (UPI) is an Indian instant payment system developed by the National Payments Corporation of India (NPCI) in 2016. It is a highly popular method of transferring funds between bank accounts instantly, with over 500 million active users in India as of 2025. One of the key reasons for its popularity is its zero-transaction fee for peer-to-peer transactions. However, an interchange fee may be applicable on certain transactions involving Prepaid Payment Instruments (PPIs), such as digital wallets.
To ensure the security of UPI transactions, two-factor authentication (2FA) and a UPI PIN are required. 2FA adds an extra layer of security to the user's account, requiring them to provide two different authentication factors to confirm their identity. This could include something they know, such as a password or PIN, something they have, such as a physical token or their mobile phone, or something they are, such as a fingerprint or face ID.
The UPI PIN is a unique, 4 or 6-digit password that the user creates to authorise transactions from their bank account. It is different from the MPIN, which is the app-level password set during registration. By setting a UPI PIN, users can confirm transactions and keep their accounts safe from fraud. This PIN must be kept confidential to prevent unauthorised transactions.
When using the BHIM Axis Pay app, a UPI PIN must be set for each bank account linked to the app. This UPI PIN is required to initiate a debit transaction through the user's Virtual Payment Address (VPA) or UPI ID. Axis Bank ensures that its Mobile Banking app provides a secure and user-friendly platform for UPI payments, instant money transfers, and mobile and DTH recharges.
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Axis Pay app allows users to send and receive money using a Virtual Payment Address/UPI ID
The BHIM Axis Pay app is a Unified Payment Interface (UPI) provided by Axis Bank for secure money transactions. It allows users to send and receive money using a Virtual Payment Address (VPA) or UPI ID. This means that users can transfer money directly from their accounts and receive money into their accounts without the hassle of loading wallets or transferring money from a wallet to a bank account.
To use the BHIM Axis Pay app, users must first download the app from the Google Play Store or Apple Store and register their details. They will then be able to set up a VPA or UPI ID, which is a unique ID linked to their account. This can be used instead of sharing sensitive account details and allows users to send and receive money instantly and securely.
The BHIM Axis Pay app also offers additional features such as mobile and DTH recharges, bill payments, and the ability to check account balances. There are no transaction charges for using the BHIM Axis Pay app, although standard data access rates may be applicable as per the user's telecom service provider.
It's important to note that UPI transactions have become popular due to their zero-cost feature for users. While traditional peer-to-peer UPI transactions are typically free, certain transactions involving Prepaid Payment Instruments (PPIs) or digital wallets may incur interchange fees. However, these fees are usually borne by merchants rather than customers.
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Axis Bank RuPay Credit Cards can be linked to any UPI app
Axis Bank's UPI service, BHIM Axis Pay, offers a seamless and secure way to handle digital payments without any transaction charges for direct bank-to-bank transfers. This service can be used for instant money transfers, mobile and DTH recharges, and more. Axis Bank also offers a range of RuPay Credit Cards that can be linked to any UPI app, including BHIM Axis Pay, Google Pay, PhonePe, and PayTm.
The process of linking your RuPay Credit Card to a UPI app is straightforward. First, download your chosen UPI app and verify your mobile number. Then, follow the registration process, which includes setting up a UPI PIN to authorise transactions. After successful registration, click on "Link RuPay Credit Card" in the app's card control settings. It is important to note that your UPI PIN should be different from your RuPay Credit Card PIN and any other bank account PINs you may have.
Once your RuPay Credit Card is linked to a UPI app, you can make payments to merchants by scanning a UPI QR code. Additionally, you can enjoy various benefits, such as cashback on online food delivery, entertainment, and local commutes, as well as cashback and discounts on transactions made through the AXIS BANK SUPERMONEY RuPay Credit Card.
It is important to remember that there are certain restrictions on using RuPay Credit Cards on UPI for specific transaction types, such as person-to-person payments, cash withdrawals, card-to-card payments, and certain merchant categories as defined in the Terms and Conditions.
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Frequently asked questions
Traditionally, peer-to-peer UPI transactions have been free, and despite recent policy updates, there are still no charges for transferring money between bank accounts, even if the banks differ. However, Axis Bank has imposed a transaction fee on UPI transactions of Rs. 1000 or more after the first 20 free transactions per month.
You will be charged Rs. 2.50 per transaction for transactions under Rs. 1000, and Rs. 5.50 for transactions above Rs. 1000.
No, BHIM Axis Pay does not charge for transactions.
No, you will not be charged for linking your Axis Bank RuPay Credit Card to a UPI app.
