Myth 1: UPI Payments Will Soon Have Fees
This is one of the most common myths — and it resurfaces every few months. The truth is, UPI remains free for regular users. Under Rbi Upi Charges Clarification, the Reserve Bank of India (RBI) and NPCI have clearly stated that peer-to-peer (P2P) and bank-to-merchant (P2M) payments made through UPI apps will continue to have zero charges for end-users.
Some confusion came from the interchange fee that applies only to merchant transactions above ₹2,000 made via prepaid wallets — not bank-linked UPI. That fee is charged between banks and payment aggregators, not customers.
So, if you pay your local grocer or send money to a friend, it remains completely free — no hidden costs or deductions from your account.
Insight: RBI has no plan to charge users for UPI transfers — it’s part of India’s “public digital good” model.Myth 2: Daily UPI Limits Are the Same for Everyone
Another widespread misconception is that every user gets the same UPI limit. Under Upi Transaction Limit Guidelines, the reality is more nuanced. NPCI allows banks to set their own UPI transaction limits within an overall RBI framework.
Here’s how it actually works in 2025:
- Standard UPI limit: ₹1 lakh per day across most banks and apps.
- High-value transactions: ₹5 lakh for select use cases like education, hospital payments, and credit card repayments.
- Per transaction limit: ₹1–₹2 lakh depending on your bank and KYC status.
- Special categories: For small merchants and verified users, higher limits may apply.
This flexibility allows banks to manage fraud risk while keeping essential payments hassle-free. So if one app says your limit is ₹1 lakh and another allows ₹2 lakh — both are correct under RBI rules.
Tip: Your UPI limit depends on your bank, not your app — check your app’s “Bank Account Info” section for details.Myth 3: Third-Party Apps Control UPI Data
Many users think apps like Google Pay or PhonePe have full access to their financial data. In reality, all UPI transactions are processed via banks and NPCI’s secure rails. As outlined in Upi Data Privacy Framework, third-party app providers (TPAPs) act only as interfaces — they don’t store or control transaction data.
Every payment is authorized by your bank using two-factor authentication (PIN + device binding). The TPAP can see only metadata (like transaction status) required for app functionality. Sensitive information like account numbers, IFSCs, or balances remain encrypted and invisible to app providers.
In 2025, NPCI also launched a Data Privacy Dashboard to help users view and manage app permissions directly within their UPI settings — further tightening control.
Insight: UPI apps are like digital messengers — they carry payment requests but never read your messages.Myth 4: UPI Rules Are Changing Every Month
With frequent headlines about “new UPI limits” or “RBI updates,” many users feel the rules are constantly shifting. But Npci Upi Regulatory Faqs clarifies that UPI’s core policies remain stable. Only feature updates — like recurring payments, AutoPay, or credit line integration — are being added gradually.
Recent real updates in 2025 include:
- UPI Credit Line: Rolling out to more banks under RBI’s framework.
- Face Authentication: Added as an optional login and payment method.
- UPI for Education Fees: Higher transaction limits introduced for schools and colleges.
- CBDC Integration: Pilot trials connecting e₹ wallets with UPI interfaces.
These changes are enhancements, not disruptions. NPCI has ensured backward compatibility, meaning your existing UPI setup will keep working without any action from you.
Tip: If a message says “UPI is ending soon,” it’s a scam — RBI and NPCI announce rule changes only through official channels.UPI continues to be India’s most trusted digital payment network, processing over 15 billion transactions monthly. Understanding what’s fact and what’s fiction helps every user stay safe and confident in this fast-changing fintech world.
Frequently Asked Questions
1. Is UPI still free in 2025?
Yes. RBI and NPCI have confirmed there are no user charges for standard UPI transactions.
2. What’s the maximum daily limit for UPI?
Most users can send up to ₹1 lakh per day, but some banks allow up to ₹5 lakh for specific categories like education or hospital bills.
3. Can UPI apps see my bank details?
No. Apps only route payments. Your account and transaction data stay encrypted with your bank and NPCI.
4. Do I need to update my app after every rule change?
No. New features roll out automatically; you just need to keep your app updated for security patches.
5. Are UPI rules changing again soon?
Only gradual upgrades — no structural rule changes. RBI and NPCI ensure stability for all users.