This article is from Dec 06, 2020

Is there a 30% fee to send money through Google Pay, PhonePe from January 1st?


Coming into effect from January 1, 2021 Google Pay, 30% charge for sending money through Phone Pay.

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The National Payments Corporation of India (NPCI) has decided to impose a 30 per cent cap on third party Unified Payments Interface (UPI) app usage in India from January 1, 2021. It comes into effect from January 1, 2021. 30% fee to send money through Google Pay, Phone Pay ”has been going viral on social media. Followers are also being asked us to post about this.

When searching for who posted this news, the news was published on a website called Theekadhir.

Fact Check:

In a statement issued on November 5, the National Payments Authority of India said, “UPI has reached 2 billion transactions per month and has issued 30% of the total transactions processed at UPI (CAP) with the potential for future growth. This applies to all third-party processor providers. The cap will be calculated at 30% based on the total number of transactions processed in UPI during the previous three months.

This means that third party processors (DPAs) such as Google Pay and PhonePay are required to make transactions up to 30% of the total amount of UPI transactions made in the last three months for the next month.

2016- Digital money transfer in India is on the rise due to the impact of the demonetisation. Indians are making more and more UPI transactions through Google Pay, PhonePe, PayTM etc. This is what the government too encouraged.

Google Pay and PhonePe are the two companies that dominate the Indian UPI system. Both the processors each account for 40 per cent of India’s UPI transactions. The remaining 20 per cent are owned by PayTM and MobiQuick.

Under the new measure, third-party processors will only be able to process the transaction next month for 30% of the transactions made in the past three months. The 30% cap is not a fee that users have to pay.

However, NBCI has not clarified what will happen after the mandatory size limit of a third-party processor reaches 30 per cent. This action will affect Google Pay, PhonePe and other transaction processors. This may increase the number of failed transactions that users encounter. This can come as a shock to users.


UPI payment processors via Gpay, Phonepe, Amazon pay, BHIM UPI more than 20 transactions a month goes by when charged. Axis Bank, ICICI Bank, HDFC and Kotak Mahindra Bank charge Rs 2.50 for up to Rs 1,000 and Rs 5 for transactions above Rs 1,000.

However, the Google support site states that no transactions other than UPI (over 20) will be charged via Google Pay. Although no clear details have yet been provided on NBCI’s action on the UPI transaction, 30% is cape only. It is not a fee for users.

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