UPI payments will now incur charges.

UPI payments will now incur charges. Not all UPI payments are free to use upi bank. Interchange fees are levied on payments made by borrowers through prepaid instruments such as cards, wallets, etc.

UPI transaction charges: NPCI has advised that UPI transactions made via prepaid instruments, such as wallets and cards will attract an interchange fee of 1.1 per cent for merchant payments from April 1, 2023. The interchange fee will be levied only on specified merchant transactions of above Rs 2,000

The National Payments Corporation of India has given instructions in this regard.

According to the NPCI circular, NPCI has decided to impose a 1.1 percent transaction fee on merchant users who conduct transactions above Rs.2000. With this additional amount, PPI users will now have to pay 15 basis points as wallet loading service charge to the bank. But the information is that no money will be charged for transactions between individuals or transactions between individuals and creditors.

Unified Payment Interface UPI ?

Unified Payments Interface is an instant real-time payment system developed by the National Payments Corporation of India. The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions. It is used on mobile devices to instantly transfer money between two bank accounts.