UPI Transaction: NPCI has suggested levy of Prepaid Payment Instrument (PPI) fees on merchant payments through Unified Payments Interface (UPI). This charge is set to be levied on transactions above Rs 2,000 through UPI apps like Gpay, Phonepe or Paytm. In such a situation, UPI transactions may prove costly from April 1.
UPI Payment Charges: The Central Government’s plan to promote digital transactions can now become a source of income for it. Now UPI transactions may cost you dearly. That is, you may have to pay a charge for paying through GPay, PhonePe, Paytm app. National Payments Corporation of India (NPCI) has issued a circular in this regard. Accordingly, it has been recommended to levy prepaid payment instrument (PPI) charges on merchant payments made through UPI from April 1. It means to say that from April 1, additional charges will have to be paid on the transaction done with the merchant.
It has been recommended by NPCI to impose this charge at 0.5-1.1 per cent. A PPI of 1.1 per cent will be levied on transactions above Rs 2,000. This charge will have to be paid only to those people, who are for merchant transactions. It will have no effect on the common people.
70% transactions above Rs 2000
About 70 per cent of UPI transactions in India are above Rs 2,000. In such a situation, preparations have been made to impose an interchange charge of 1.1 per cent on them. The National Payment Corporation of India has said that after implementing this fee from April 1, it will be reviewed before September 30. Explain that the National Payment Corporation has fixed different interchange fees for different sectors. The rate of surcharge is expected to be low for agriculture and telecom sectors. Such people may now have to pay extra charges for digital transactions like PhonePe, UPI, GooglePay, Paytm.
Know who will not be charged interchange fee
The interchange fee will have to be paid only by the users paying the merchant transactions. The interchange fee will have to be paid by the merchant transaction or the user paying the merchant. There will be no charges for any peer to peer or peer to peer merchant transactions between the bank account and PPI Wallet.
