UPI Transactions Over 2000 INR Bear 1.1% Charges

• UPI transactions using PPIs over Rs 2,000 will be charged by the NPCI.
• An interchange fee of up to 1.1% has been proposed by the NPCI.

The National Payments Corporation of India (NPCI) has proposed an interchange fee on UPI transactions of more than Rs 2,000 undertaken via Prepaid Payment Instruments (PPIs). A UPI transaction fee will be charged from April 1, 2023 and by September 30, 2023, the interchange fee will be revised.

Twitter has been scrambling about the new UPI payment transaction, which has led users to confusion. Following the noise over the social media, NPCI clarified in its official Twitter account that there is no fee for users or bank accounts, the interchange fees are charged for only PPIs. This indicates that there would be a 1.1% interchange fee for UPI transactions done using PPIs like wallets and credit cards.

However, the change is intended to boost revenue for banks and payment service providers, who have reportedly been having trouble making ends meet due to the high cost of UPI transactions, as per the report.