UPI Payment Charges: A big blow to those making UPI payments, transactions will have to be done from April 1. NPCI clarified PPI charges and UPI charges.
UPI Payment
A big blow to the users of UPI payment, now users will have to pay interchange fees on some payments. According to NPCI, 99.99 CCD UPI transactions across the country are done through bank accounts.
UPI Payment Charges
Unified Payment Interface (UPI) has become an important part of the lives of common people. Nowadays, most people prefer to pay through UPI for every small and big buyer. In such a situation, when the National Payment Corporation of India (NPCI), which operates UPI, issued a circular on 24 March 2023, it was told that Prepaid Payment Instrument (PPI) will also be implemented in UPI Payment Transaction (UPI). If UPI does the transaction through payment mobile, then in such a situation they will have to pay the interchange fee. The important thing is that cards and wallets come under PPI.
| After March 31, an interchange charge of 1.1 percent will be charged on UPI charges above Rs 2,000. |
NPCI has issued a clarification regarding the transaction charges to be levied from April 1, 2023, on transactions done through UPI. They denied the news of charging on UPI payment. NPCI has told that the customer will not have to pay any fee for doing transactions from one bank account to another through UPI. NPCI has also told that the maximum 99.9 percent of UPI transactions in the country are done through bank accounts only.
How Much Interchange Fee Will Be Charged?
According to the news, this interchange fee will be implemented only on transactions above ₹ 2000 in the circular of NPCI. This fee will generally total 1.1% of the amount in excess of ₹2000. This means that NPCI has fixed different entry fees for different regions. The lowest interchange fees will be charged in the agriculture and telecom sectors. Such charges will have to be paid only by the users making payments to merchant transactions.
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Who Will Not Be Charged An Interchange Fee?
According to the National Payments Corporation of India (NPCI), there will be no charges of any kind for peer-to-peer (P2P) and peer-to-peer merchant (P2PM) transactions between bank accounts and PPE wallets.
NPCI Clarification On UPI Payment Charges
NPCI said that the bank’s customers will not have to pay any kind of charge for the payment made through UPA. Also, no charges of any kind will have to be paid for UPI transactions from one bank to another. NPCI has also stated that as per the regulating guidelines, Prepaid Payment Instrument (PPI) is now a part of the interoperable UPI ecosystem. In view of this, NPCI has allowed PPI Wallets (PPIs) to be a part of the interoperable UPI ecosystem. The interchange chart will be implemented only on PPI merchant transactions (Prepaid Instruments merchant transactions) and the customer will not have to pay any charges for this.
