How does the UPI payment option at Zerodha work?

I just saw that Zerodha has added a UPI option on their payment page. How does this work? What UPI ID do I give to transfer funds? Is it instant transfer?

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The UPI payment option allows you to transfer funds from your mapped bank account using a UPI app. I’ve done a test transfer to show how this is done.

Once you select the UPI option, you’ll see a field to enter your UPI ID. Make sure the UPI ID is mapped to a bank account that you have mapped with your Zerodha account for the transfer to go through successfully.


Over here, I’ve entered the UPI ID for my Kotak account, linked to my Zerodha account.

Once you click on ‘Continue’, you’ll see this page.

On the UPI app on your phone, you’ll receive a collect request from Zerodha. This would look something like this:

Just enter the app and approve the transfer. This will require you to enter your UPI PIN. (Also, you’ll have to ensure you make the payment from the collect request, and not by initiating a new transfer to Zerodha’s VPA (UPI ID). If you make a transfer to Zerodha’s VPA directly, the money won’t reflect in your account and you will have to raise a ticket requesting a manual refund.)

Once that’s done, you’ll see a confirmation on the Zerodha payment page that looks like this:

And you’re done! The funds are now available for you to trade!

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What about charges Charged by Zerodha for Adding Funds using UPI?

Okay I got it. It’s Rs.9/ + GST.

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What If the UPI transaction fails but the bank account has been debited? whom to contact and what are the necessary / required proofs i should be handy with?

So NEFT is still best option as far as charges are considered? Unless we need immediate trasnfer, right?

NEFT is hardly a good option, transfers happen late(depends on bank) whereas in case of immediate transfer, you only pay Rs. 9 + GST i,e, around Rs. 11

If you trade in stock market, Rs 11 shouldn’t matter much.

This is one of the drawbacks I had to face, when using UPI for retail online transaction.

The money goes out of the BUYER’s account but does not reach the SELLER’s Account. The transaction gets failed somewhere in between.

The Buyer who is not aware of this, then thinks the seller has got it, but does not want to dispatch the item, This then raises un-necessary dispute between the buyer and seller for no reason.

It takes about 2 weeks for the BUYER to get the money automatically refunded to their account.

Meanwhile the BUYER is left with no cash in bank.

@Matti When Transferring cash to Trading account, is there a chance this could happen ?

Or meanwhile, is it much safer to use the existing fail safe methods, like NEFT, IMPS ?

UPI payments across other service vendors is free of cost. I wonder why zerodha is charging Rs. 9 + GST extra on each transaction. It’s a bank to bank transfer with no gateway involved, as far as i know.

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Only peer to peer is free. For commercial implementation of UPI, banks are charging. We are in talks and asking for a volume discount, hopefully we should be able to do something to reduce this soon.

Finally you appreciated my suggestion, thanks

It matters when you’re a small trader.

Good to know that; because even for commercial implementation; the charge is supposed to be quite low; depending on the payment gateway or platform that is being used.

Zerodha is known for low charges. I look forward to low charge implementation.

Can it be disclosed that how much is being charged to Zerodha for each UPI transaction?

@nithin UPI transfer charges are too high.

What if I log in to my BHIM app where it is the same Bank account linked to Zerodha a/c and I do a UPI transfer using A/c No + IFSC details?

This should not incur in any charges. When I am transferring through NEFT/ IMPS from my bank a/c online, Zerodha does not charge anything. I am sure we can do similar for UPI transfer as well.

UPI is free for Peer to peer, so ideally you are not supposed to use this way for transfer to businesses. You have to go through the UPI flow on the payment gateway page. The current Rs 9, this will drop. We are waiting for all the initial issues that we are facing to drop, our volume based discount will kick in. We will also most likely have our banks waive off the UPI charges for the first few months atleast. Give it another week.

The UPI transaction charge is zero.