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Check what the National Payments Corporation of India had to say on the rumors around UPI transaction charges
Today, NPCI released a statement to clarify that end customers or users of UPI apps will not be affected by the recent announcement around UPI interchange fee. Tap on the link below to view the official statement
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According to a recent directive from the National Payments Corporation of India, merchant transactions on the Unified Payments Interface will start charging an interchange fee from April 1 for transactions made over Rs 2000. But this will not impact general users in any manner
The interchange fee is often associated with card transactions and is assessed to cover the expenses of transaction acceptance, processing, and authorisation.
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Interchange fees are introduced in the range of 0.5% to 1.1%, with 0.5% for fuel, 0.9% for supermarkets, 0.7% for telecom, utilities/post office, education, and agriculture, and 1% for mutual funds, government, insurance, and railroads.
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UPI payments conducted through digital wallets will now incur a 1.1% fee if the value of the UPI transaction is Rs 2000 or above. However, wallet transactions that are less than Rs 2000 will not be charged.
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The UPI transaction fee will be charged on the merchant side. This indicates that businesses have the option of passing the additional cost onto customers.
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Normal UPI transactions, which are performed from one bank account to another, will continue to be free.
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