There are some possible reasons for UPI to increase your expenses:
- UPI Debit Card Charges: RBI has allowed charging on UPI debit card transactions from 2023. If you make payment using debit card via UPI, you may be charged 0.5% of the transaction amount + GST (maximum ₹2).
- Merchant Payment Charges: Some merchants may levy charges on UPI transactions, especially on large transactions. These charges can be from 1% to 2%.
- Third-Party App Charges: Some third-party UPI apps may charge for their services. These may include charges for bill payment, money transfer, or investment.
- Fraudulent Transactions: If your UPI account gets hacked, then any unauthorized person can withdraw money from your account. Therefore, it is very important to keep your UPI account safe.
- Impulsive Spending: Making payment through UPI is very easy, due to which people can spend more impulsively. Some tips to reduce expenses through UPI:
Avoid UPI debit card transactions: If you have to make payment through debit card, then use normal debit card in which you will not have to pay any charges.
Keep in mind merchant charges: Before making payment, check the charges levied by the merchant. If there is any charge, you can consider paying through another merchant.
Use free UPI apps: There are some UPI apps which do not charge any fee. Try to use such an app.
Keep your UPI account safe: Do not share your UPI PIN and MPIN with anyone. Avoid doing UPI transactions on public Wi-Fi.
Keep track of your expenses: Regularly check your bank statements and UPI transaction history so that you can keep track of your expenses.
It is also important to note that UPI is a very safe and convenient payment method. UPI has played a big role in promoting digital payments in India. Despite some charges, UPI is still the cheapest and most efficient method of payment.
