New Rules for UPI transactions; Users will not be charged...
It is mentioned that the interchange fee of up to 1.1 percent will be applicable.
New Delhi: National Payments Corporation of India (NPCI) in its latest circular announced the charges on merchant transactions on Unified Payments Interface (UPI) starting April 1, 2023.
It is mentioned that the interchange fee of up to 1.1 percent will be applicable. It is said that the charges will be levied if the transaction is more than Rs 2,000 on UPI payments done via GPay, Paytm and other apps.
In a recent circular it said, "In the recent times, UPI has emerged as preferred mode of digital payment by offering free, fast, secure and seamless experience. Traditionally, the most preferred method of UPI transactions is linking the Bank account in any UPI enabled app for making payments which contributes over 99.9% of total UPI transactions. These Bank account-to-account transactions continue to remain free for Customers and Merchants.
Recent regulatory guidelines, the Prepaid Payment Instruments (PPI Wallets) have been permitted to be part of interoperable UPI ecosystem. In view of this NPCI has now permitted the PPI wallets to be part of interoperable UPI ecosystem. The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers,and it is further clarified that there are no charges for the bank account to bank account based UPI payments (i.e. normal UPI payments).
With this addition to UPI, the Customers will have the choice of using any bank accounts, RuPay Credit card and prepaid wallets on UPI enabled apps.
After this NPCI's announcement the rumors spreads like a fire about the charges for making online payments.
"Regarding NPCI circular on interchange fees & wallet interoperability, no customer will pay any charges on making payments from #UPI either from bank account or PPI/Paytm Wallet. Please do not spread misinformation. #Mobile payments will continue to drive our economy forward!" said Paytm Payment Bank.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
