30-Mar-2023
2 mins read
No UPI Transaction Fees Above Rs 2,000 for General Users, But NPCI Introduces Changes
NPCI recommends interchange fee on UPI transactions over Rs 2,000 through Prepaid Payment Instruments.
No UPI fees for general users- Starting April 1, 2023, UPI transactions above Rs 2,000 will not be charged for general users. However, the National Payments Corporation of India, also called NPCI, has introduced changes concerning UPI transactions, specifically targeting Prepaid Payment Instruments (PPIs) like digital wallets.
What does the new NPCI rule mean for consumers and merchants?
The new rule explained- The NPCI has recommended a 1.1% interchange fee on UPI transactions over Rs 2,000 through PPIs like digital wallets (Paytm, PhonePe, etc.). This means that payments made through UPI transactions or bank accounts will not be charged, regardless of the amount. The new rule aims to increase revenue for banks and payment service providers struggling with the high cost of UPI transactions.
Who will be impacted by the new UPI transaction rule?
Impact on merchants- This rule will primarily impact merchants who accept payments through the PPI method. Rs 2,000 and above payments made through digital wallets will be charged an interchange fee.
What about UPI payments through bank accounts?
Bank account UPI payments remain free- UPI payments made through bank accounts will not be impacted and will remain free of cost.