The NPCI has proposed an interchange fee on UPI transactions worth more than Rs 2,000 conducted using Prepaid Payment Instruments (PPIs).
Beginning April 1, 2023, UPI payments will not be charged. Only certain digital wallet activities will be billed.The modification will not affect users. Only a subset of merchants will be required to pay the interchange charge.
The National Payments Corporation of India (NPCI) has suggested some adjustments for UPI transactions that will not affect general users, at least for the time being.
To begin, here is what the new regulation states: It is straightforward. The NPCI has proposed an interchange fee on UPI transactions worth more than Rs 2,000 conducted using Prepaid Payment Instruments. (PPIs).
In basic terms, UPI payments made only through PPIs such as digital wallets (Paytm, PhonePe, or any other wallet) will incur a 1.1 per cent fee if the transaction value is Rs 2000 or higher. For example, if a person pays Rs 2000 or more to a merchant using a digital wallet after April 1, 2023, the merchant will be charged a fee.
The NPCI refers to it as an “interchange fee.” This also means that purchases made through bank accounts or UPI transactions, regardless of the amount, will not be charged.