Transaction Fees for IMPS and UPI Transfers
In order to encourage digital transactions, the Finance Ministry asked PSU banks to restrict fees on payments through IMPS and UPI to the extent that is applicable for NEFT fund transfer of over Rs 1,000. As per RBI norms,
Transaction Fees on NEFT Transfer /IMPS / UPI
NEFT transfers of :-
up to Rs 10,000 Fees is Rs 2.5
From Rs 10,000 to Rs 1 lakh fee is Rs 5;
on Rs 1 Lakh to Rs 2 lakh Fees is Rs 15,
Beyond Rs 2 lakh Fees is Rs 25.
Service tax is charged in addition to this.
Transaction Limit for UPI
At present, the upper limit per UPI transaction is Rs. 1 Lakh. Read more UPI -Unified Payment Interface -FAQ
Transaction Fees on USSD Transfer (*99# Service)
For Unstructured Supplementary Service Data (USSD) transactions above Rs 1,000, the ministry said a further discount of 50 paise on these rates shall apply. USSD is mobile short code message and used mainly for banking services on feature phone. The USSD fee is Rs 1.50, which has been waived till December 30, 2016.
The RBI guidelines for Mobile Banking Services has prescribed a ceiling of Rs. 5000 per transaction for financial transactions using *99# service.
Thus it is better to do Transactions through Mobile USSD as the Transaction Charges will be Lowest.
[Read More on *99# Service – All you wanted to Know – Mobile Banking ]
In order to further promote digital and card payments, the ministry has issued a direction in public interest to all Public Sector Banks, said an official statement.
In accordance with this “these banks shall not charge fees for transactions settled on Immediate Payment Service (IMPS) and Unified Payments Interface (UPI) in excess of rates charged for National Electronic Funds Transfer (NEFT) for transactions above Rs 1000, with service tax being charged at actuals”, it said.
IMPS is an interbank electronic instant mobile money transfer service through mobile phones. The UPI app enables customers to make online as well as offline payment to merchants from their bank accounts, without typing card or net banking/wallet details and IFSC code. This direction will apply for all transactions up to March 31, 2017.
The following channels may be used to initiate IMPS transactions.
Mobile phones : *99#
Smartphone- Bank App/ SMS / WAP/USSD (NUUP)
Basic phone-SMS/USSD (NUUP)
Internet- Bank’s Internet banking facility
ATM-By Using ATM Card at Banks ATM
The sender enters receivers details like:
MMID & Mobile no. or Account number & IFS Code or Aadhaar number
Amount to be transferred
Remarks/Payment Reference number
Sender’s M-PIN Both sender & receiver get SMS confirmation