The advent of Unified Payments Interface (UPI) has enabled a free pathway for digital transactions to partake and flourish. The immediate transaction setup has been initiated and created by National Payments Corporation of India (NPCI), an RBI governed subsidiary. The UPI mode of payment is constructed in the form of IMPS infrastructure that endorses a quick transfer of funds to the group of beneficiaries.
PhonePe is one among the leading platforms promoting transactions through the UPI mode. Using the UPI-based system, you can receive and send money instantly with the use of a Virtual Payment Address and a unique UPI PIN. Once you link your bank account with the PhonePe app, you need not refer to it for the forthcoming payments. Your UPI (Personal Identification Number), a special 4-6 digit passcode, is the sole thing required to complete transactions.
PhonePe being the leading and trustworthy digital payment platform offers some set charges for UPI transactions. Also, the PhonePe limit per day proposes different thresholds for its user. This article discusses the important aspects to discover about PhonePe charges for digital UPI transactions.
New Parameters Projected by PhonePe
PhonePe allows payment of bills and transactions with no additional charges. However, as per the recent parameters laid out by some banks, users will have to pay some charges to successfully run through the UPI transactions. As a user, you also need to ascertain the deduction of the amount as per the PhonePe limit per day, set by the banks. In conjunction with the UPI payments, there are many other sources like: IMPS, NEFT to transfer money rapidly.
Estimated Cost of UPI Transactions
Many banks have passed a mandate to apply charges on the UPI transactions. Some of these banks are:
- Axis bank
- HDFC bank
- Kotak Mahindra
The above mentioned banks will be charging users at every P2P (peer-to-peer) transaction. However, there is a catch, the charges are levied only after a user completes 20 successive transactions through the digital mode.
As per the PhonePe limit per day, as a user you are allowed to transact within the following parameters:
- Withdraw or send only Rs. 1 lakh per day.
- Around 20 transactions every day.
- Money request for up to Rs. 2000 only.
Charges applied on each transaction by PhonePe
- Rs. 2.5 will be imposed for digital transactions for the threshold of Rs. 1000 or more.
- Rs. 5 will be imposed on the user’s transactions of more than Rs. 1000.
- 18% Goods and Services Tax (GST) will also be imposed on similar transactions.
Interestingly, the charges imposed as per the PhonePe limit per day, the UPI platform’s deduction of serviceable amount is much lesser and economical than the RBI payment modes.
Mobile/ Bank Applications with an instilled UPI
Just like any other serviceable platform, you need to install the PhonePe mobile application to fulfill your digital transaction needs. To enable the UPI payment system download the banking/mobile applications, sign in with your details and thereby you are all set to transact digitally.
You can explore many more digital payment apps in the Play Store and App Store like: PhonePe, Google Pay, Paytm, Airtel Payments Bank, BHIM UPI and Amazon Pay. Some banks offer their personalised mobile apps. The popular ones include: Payzapp Application by HDFC and ICICI Bank, YONO by the State Bank of India has been included as an UPI app.
The Final Verdict
As per the report published by the Economic Times, in order to measure the PhonePe limit per day, users were charged a processing fee of Re.1 on every mobile recharges worth Rs. 51-100 and Rs. 2 on every recharge above Rs.100. This was done to ensure that customers transact in a systematised manner. However, that was meant for a shorter duration.
The specialised margins set by the PhonePe app have been discussed closely in this article. Do keep in mind the parameters and transact with the beneficiaries in an easier, safer and economical way.