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The ₹3599 plan is one of the most popular options among the annual recharge plans of major telecom companies like Reliance Jio and Bharti Airtel, which offers 2.5GB data per day, unlimited 5G and calling for full 365 days. Often when consumers recharge this large amount through popular UPI apps like Google Pay, PhonePe or Paytm, they see an amount ranging from ₹3601 to ₹3604 instead of ₹3599 on the final payment screen. In such a situation, this question arises in the minds of many users whether the government or banks are deducting any tax/charge on payment of more than ₹ 2000 through UPI? Let us understand all this financial mathematics and the real reason for charging in detail.
The direct answer is-no way. As per the clear rules of National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI), there are no charges for general consumers on simple UPI (Bank-to-Bank UPI) transfers made directly from the bank account.
Often people get confused about the Merchant Discount Rate (MDR) rules of NPCI. NPCI regulations clearly state that any MDR or settlement charges imposed on merchant transactions are an internal matter between the merchant (company) and the payment service provider; This cannot be recovered as additional charge from the consumer’s pocket under any circumstances. So if you pay ₹3599 through UPI linked to a bank account, the UPI system itself does not deduct any money.
If UPI does not deduct the charge, why does extra money appear on the payment screen? The reason for this is not the UPI system, but Platform Fee / Convenience Fee of Third-Party Fintech Apps Is.
PhonePe, Paytm and in some cases other payment aggregators have started imposing platform charges ranging from Rs 1 to Rs 3-5 on mobile recharge, electricity bills and utility payments. When you select recharge of ₹3599 through these apps:
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Basic plan price: ₹3599
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App Platform Fee + GST: ₹2 to ₹4
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Total Deductible Amount: Approximately ₹3601 to ₹3603
This charge related payment app itself collects under its services, server maintenance and earning model, and not the telecom company or bank.
If you do not want to pay a single extra rupee (platform fee) on the annual recharge of ₹3599, then you can adopt these easy methods:
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Use the official app of the telecom company:
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Jio users directly MyJio App Or visit Jio.com.
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airtel users Airtel Thanks App Or visit Airtel.in.
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Here choose the ₹3599 plan and select ‘UPI’ (Google Pay, PhonePe, Cred or Paytm) in the payment option. There are no platform fees on the company’s own app and exactly ₹ 3599 will be deducted from your bank account.
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Net Banking or Card on Company Website: Apart from UPI, on the official portal, accurate payment can also be made through debit card, credit card or net banking without any surcharge.
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Cashback and Discount Vouchers: Paying through the official app often comes with additional data coupons, partner merchant discounts or UPI cashback offers, further reducing the actual cost.
If you go to the bill/recharge section of a third-party payment app and make a payment by entering the number, the app may add its own convenience fee. But if you start the process from MyJio or Airtel Thanks app and choose UPI for payment, you will have to pay only ₹3599 for the ₹3599 plan.