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UPI New Rules 2025 : India’s largest public sector bank, State Bank of India (SBI), has implemented a new fee structure for IMPS (Immediate Payment Service) transactions for its customers. This change has come into effect nationwide from August 15, 2025. Under the new rules, an additional charge will be applied on transfers above ₹25,000, while transactions up to ₹25,000 will remain completely free. The bank has taken this step to enhance the quality of its digital services and to strengthen its technical infrastructure.
Why SBI Changed UPI and IMPS Rules
With the growing number of digital transactions, banks are facing increasing pressure regarding cybersecurity, server upgradation, and operational costs. Considering this, SBI has decided to apply a nominal fee on IMPS transactions. Earlier, the bank did not charge any fee for online transfers of any amount, but now, customers will have to pay a small charge when sending larger sums.
The bank argues that this step will benefit ordinary customers making small transactions since transfers up to ₹25,000 will still be free. Moreover, this move is expected to encourage more people towards digital payments.
New Fee Structure — Know How Much You’ll Pay
SBI’s new fee rates are transparent and minimal.
- For online IMPS transactions between ₹25,001 and ₹1 lakh — ₹2 + GST
- For ₹1 lakh to ₹2 lakh — ₹6 + GST
- For ₹2 lakh to ₹5 lakh — ₹10 + GST
- For transactions above ₹5 lakh — ₹20 + GST
This charge will apply only to large-value transactions, so small users or household transactions will not be affected. The policy aligns with the bank’s ‘Large User Pay’ model, where only high-value transfer customers bear the cost.
New Rules Also Apply to Branch Transactions
For customers who transfer money through bank branches instead of online, a new fee structure has also been implemented:
- Up to ₹10,000 — ₹2
- ₹10,001 to ₹25,000 — ₹2
- ₹25,001 to ₹1 lakh — ₹5
- ₹1 lakh to ₹2 lakh — ₹15
- ₹2 lakh to ₹5 lakh — ₹20
An additional 18% GST will be applicable on all the above charges. This change will mainly affect customers who still rely on offline banking. SBI has clarified that its charges are lower than other banks and aim to encourage users to shift to digital banking gradually.
Other Public Sector Banks Also Revised Charges
Apart from SBI, other major government banks have also revised their IMPS charges:
- Punjab National Bank (PNB): ₹6 up to ₹25,000; ₹12 for ₹1–2 lakh; ₹12 for ₹2–5 lakh.
- Canara Bank: ₹3 up to ₹10,000; ₹5 up to ₹25,000; ₹8 up to ₹1 lakh; ₹15 up to ₹2 lakh; ₹20 up to ₹5 lakh.
All these rates are subject to an additional 18% GST. It is now clear that large IMPS transactions will no longer remain free, but these charges are still much lower compared to international standards.
Impact on Customers
This change will especially affect business customers, traders, and those who frequently transfer large amounts. Although each transaction incurs only a small charge, for users conducting multiple transfers each month, this could become an extra expense.
For regular users, there’s relief as transactions up to ₹25,000 will still be free. Hence, household bills, rent payments, or small family transfers will not be affected. SBI’s goal is to ensure that small customers continue to benefit from digital services, while costs are recovered from high-value users.
Important Tips for Customers
- Review your monthly transactions to understand how much the new charges will impact you.
- Combine smaller transactions to avoid paying multiple fees.
- Use alternative modes such as UPI, NEFT, and RTGS — they might be more cost-effective.
- UPI is still free for small payments, but always check the limit for higher amounts.
- If you make large-scale transfers, talk to your bank manager about special discounts or premium banking services.
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Reason Behind SBI’s New Policy
In recent years, digital transactions have seen massive growth, leading to an increase in expenses for cybersecurity, server maintenance, and software upgradation.
SBI believes that fees collected from high-value transactions will help the bank invest in better security, faster services, and advanced technology, ultimately providing customers with an enhanced digital experience in the future.
UPI New Rules 2025 – FAQs
Q1: When will the IMPS charges be applicable in SBI?
👉 The new fee structure is effective from August 15, 2025.
Q2: Are transactions up to ₹25,000 free?
👉 Yes, all IMPS transactions up to ₹25,000 remain completely free.
Q3: How much will be charged for sending ₹1 lakh?
👉 Only ₹2 + GST (for online transactions).
Q4: Have other public banks also increased rates?
👉 Yes, several banks including PNB and Canara Bank have also introduced new charges.
Q5: Will UPI payments be charged?
👉 Currently, UPI remains completely free and is the best option for small payments.
Q6: Is sending money through the branch costlier?
👉 Yes, branch transactions are slightly more expensive compared to online transfers.
Q7: How can you avoid these charges?
👉 Make transactions below ₹25,000 or choose NEFT/UPI as alternatives.
Conclusion
SBI’s new UPI and IMPS fee structure is both transparent and balanced. By keeping small-value transactions free, the bank has provided relief to the general public, while nominal charges on large transfers will help SBI improve its services further. If you wish to practice smart banking, use digital payments and UPI transactions more often — that’s the true spirit of Digital India 2025.