In today’s date, you neither need cash nor any card to make purchases. If you have your mobile phone with you, you can easily do as much shopping as you want. After demonetisation, people got used to UPI payment in such a way that people forgot cash payment.
In this era of mobile revolution, you pay online for small to big purchases. There was news about UPI payment that it is going to be expensive. Transactions above Rs 2,000 will attract a charge of 1.1 per cent. UPI payment means if you pay more than 2 thousand rupees through digital medium like Google Pay, Phone Pay and Paytm, then you may have to loose a little more pocket, but in this a little There are screws. If you make bank account linked payment then nothing has changed for you.
When will the UPI payment be charged?
The National Payments Corporation of India (NPCI) in its circular suggested that you will be charged 1.1% for payments above Rs 2000. It has been suggested that merchant transactions through UPI may attract Prepaid Payment Instruments (PPI) fees. According to the NPCI circular, you may have to pay 1.1% charge on UPI transactions above Rs 2000. After the arrival of this news, many questions started arising in the minds of the people. The question is, will UPI become expensive for the user after this decision?
Is this charge going to be imposed on all types of online payments or is it going to affect any particular segment?
NPCI has clearly stated in its circular that this change will not affect the customers. Customers will not have to pay any extra charge. There will be no charges for UPI transactions linked to bank accounts. They are absolutely free as before. There will be charges on PPI wallet only, which will have to be paid by the merchant. There is no charge on this for the customers.
Will UPI payment become expensive?
According to the circular issued by NPCI, this charge will be levied on merchant UPI transactions. That is, this charge will not apply to peer to peer (P2P) and peer to merchant (P2M) transactions between banks and prepaid wallets. That means you don’t need to take tension. You can use UPI without any hassle and worry. You will not have to pay any additional fee. Simply put, UPI payment is absolutely free. Nothing has changed for you. Nothing has changed in UPI Bank Transfer.
Who will have to pay the charge?
The new offer is only for Wallets/PPIs. That is, if you do a transaction of more than 2 thousand from the wallet, then you may be charged an interchange fee, but this charge will be taken by the merchant. That is, if you make UPI payment through prepaid payment instrument (PPI) such as wallet, credit card, then you will have to pay interchange fee. This charge will be 1.1% of the total payment made by you to the merchant.
This too when this transaction will be more than 2000 rupees. This is exactly the same as in the case of debit cards and credit cards. Bank to bank transactions are still completely free.
This charge will have to be given to the merchant. Here merchant means in simple language, understand the shopkeeper, whom you are paying through UPI.
Will it affect the general public?
There will be no impact on the common man’s pocket if the interchange charge is levied. The interchange charge is paid by the merchant to the wallet or card issuer. In such a situation, it will not affect the merchant paying less than Rs.2000. According to this circular, if you add money from your bank to your prepaid payment instrument like wallet like Paytm, PhonePe, then a company like Paytm, PhonePe will have to pay 15 basis points for loading the transaction to the remitter bank.
What option to choose?
NPCI has said in its circular that no charges will be levied on peer-to-peer and peer-to-peer-merchant transactions between bank accounts and prepaid payment instruments (PPIs). In the circular, it has been said not to implement this on P2P, P2M transactions. If you pay to a person or a shopkeeper and choose the bank account as the payment option, then you will have to pay some charges. That is, it is better to choose the bank account option while making UPI payment to avoid any kind of charge.
If still there is confusion then understand this
Interchange charges are paid by payment service providers to wallet issuers such as banks. These wallets are exclusively online payment enablers like Paytm, PhonePe, GooglePay, etc. If you understand the news here in one line, then it will not affect you. You will not have to pay any charge on the transaction from the wallet as well. This is entirely a matter between the bank and the merchant.
If you pay through UPI, then you will not be charged anything. Even if you do it through wallet, there will be no charge. This charge is a matter between the shopkeeper for whose scanner you have paid and his bank. It will become expensive for the shopkeeper (merchant) from April 1. When the money goes to the shopkeeper’s bank account through UPI QR, he will have to pay an interchange charge of 1.1% on that amount.
