Here are 10 facts about the new UPI payment rules:
The National Payments Corporation of India (NPCI) today said that the interchange fees will only be applicable for the prepaid payment instruments (PPI) merchant transactions and there is no charge to customers.
The interchange fee varies for the different categories of merchants. It ranges from 0.5% to 1.1% and a cap is also applicable in certain categories.
The interchange fee will come into effect from April 1.
The move is reportedly aimed at increasing revenue for banks and payment service providers, who have been struggling with the high cost of UPI transactions.
The NPCI said that the interchange pricing will be reviewed by September 30, 2023.
Interchange will not be applied in the case of peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions.
There is also no charge for the bank account to bank account-based UPI payments or normal UPI payments, the NPCI clarified.
"The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account-based UPI payments (i.e. normal UPI payments)," it said.
Paytm also took to Twitter to clarify that customers will not have to shell out extra while making payments through the UPI mode. "Please be informed that Paytm UPI is free, fast, secure, and seamless. No customer will pay any charges on making payments from UPI either from the bank account or PPI/Paytm Wallet," it said in a tweet.
After the new rules, customers will have the choice of using any bank account, RuPay Credit card and prepaid wallets on UPI-enabled apps.
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