UPI Payment Charges From 1st April: With the changing times, a Unified Payment Interface i.e. UPI has become an integral part of the lives of common people. Nowadays, most people prefer to make payments through UPI (UPI Payment) for every small and big purchase. In such a situation, the National Payments Corporation of India (NPCI), which now operates UPI, has said in a circular issued on March 24, 2023, that Prepaid Payment Instrument (PPI) fees will be implemented on merchant transactions from UPI. According to this notification, if a person transfers money of more than Rs 2,000 to merchants through prepaid payment instruments such as mobile wallets, then in such a situation he will have to pay an interchange fee. The thing to note is that the card and wallet come under PPI.
How much will the interchange fee be?
According to the report published in the Economic Times, this interchange fee will be charged only on transactions above Rs 2,000 in the circular of NPCI. This fee will generally total 1.1 per cent of the amount exceeding Rs 2,000. Significantly, NPCI has fixed different interchange fees for different regions. The lowest interchange fee will be charged in the agriculture and telecom sector. This charge will have to be paid only to the users who make payments to merchant transactions.
Who will not be charged an interchange fee?
According to the circular of the National Payments Corporation (NPCI), no charges will be levied on peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions between bank accounts and PPI wallets. After implementing this new rule from April 1, NPCI will review it before September 30, 2023.
