Search
No charge on normal UPI transactions for customers
March 31, 2023
The National Payments Corporation of India (NPCI) on Wednesday issued a clarification about the recently introduced interchange charges, saying the charges are not applicable to customers but for the prepaid payment instruments (PPI) transactions.
It also clarified that there will be no charges for the bank account to bank account-based UPI payments The NPCI reportedly said that using prepaid payment instruments (PPIs) – gift cards, wallets, among others for transactions through UPI will attract an interchange fee of up to 1.1 per cent starting April 1. The charges will be levied if the transaction is more than ₹2,000, it said.
Every month, over eight billion transactions are processed for free for customers and merchants, according to NPCI. UPI has emerged as a preferred mode of digital payment by offering a free, fast, secure and seamless experience.
UPI is an instant payment system developed by the National Payments Corporation of India (NPCI). It powers multiple bank accounts into a single mobile application, merging several banking features, providing seamless merchant payments.
Traditionally, the most preferred method of UPI transactions is linking the bank account in any UPI-enabled app for making payments, and they contribute about 99.9 per cent of total UPI transactions. These bank account-to-account transactions continue to remain free for customers and merchants.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://ask.careers/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
- Mumbai: https://ask.careers/cities/mumbai/
- TSCFM: https://ask.careers/institutes/tscfm/
