UPI Payment Charges From 1st April: With the changing times, Unified Payment Interface i.e. UPI has become an integral part of the lives of common people. Nowadays, most of the people prefer to make payment 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 Prepaid 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 prepaid instrument like mobile wallet, then in such a situation he will have to pay interchange fee. The thing to note is that the card and wallet comes under PPI.
How much will be the interchange fee
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 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 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.
