Unified Payments Interface Updates: NPCI has also clarified that there will be no charges for bank account to bank account based UPI payment i.e. normal UPI payment.
On the news of UPI transaction being charged from April 1, NPCI has clarified that no new rules related to charges are being implemented for the customers, the fees which were already applicable will remain the same even after April 1, 2023. . In fact, there were reports that from April 1, customers would have to pay 1.1 per cent fee for making payments through UPI, which has been rejected by NPCI. That’s why UPI users need not worry.
What is UPI, its benefits and how it works
Unified Payment Interface (UPI) ie UPI means a real time payment system. With this, customers can transfer money from one bank account to another bank account instantly. Money can be transferred from UPI anytime day or night. For using UPI, the customer’s mobile should have any UPI app like PhonePe, Paytm, Google Pay, BHIM etc. The customer has to link his bank account with the UPI app. One bank account can be linked to multiple UPI apps. At the same time, many bank accounts can also be operated through a UPI app.
NPCI said – no change in UPI transaction fees for customers
National Payments Corporation of India (NPCI) has made it clear that from April 1, no new charge will be given to UPI customers. NPCI says that there are no charges for normal UPI transactions for customers. NPCI on Wednesday issued a clarification regarding interchange charges, stating that the charges are applicable for Prepaid Payment Instruments (PPI) transactions and not for customers. NPCI has also clarified that there will be no charges for bank account-based UPI payment i.e. normal UPI payment from bank account.
Merchant will be charged for UPI payment from PPI, Wallet
NPCI said that transactions above Rs 2,000 from prepaid payment instruments (PPIs), gift cards, wallets through UPI will attract an interchange fee of 1.1 per cent from April 1. This fee will be charged on the PPI merchant, no fee will be charged on the customers.
Recently Prepaid Payment Instruments (PPI Wallets) have been allowed to be a part of the interoperable UPI ecosystem. In view of this, NPCI has now made PPI wallets a part of the interoperable UPI ecosystem. Interchange charges are applicable for PPI merchant transactions. There is no charge for customers. NPCI said that it is clarified that there are no charges for bank account to bank account based UPI payments (i.e. normal UPI payments).
