New Delhi: Is payment through UPI, which plays the biggest role in digital transactions, going to be expensive from April 1? It is being claimed in many media reports that from next month, a 1.1% fee will have to be paid on UPI payments of more than Rs 2000. However, removing the confusion spreading on this, the National Payments Corporation of India (NPCI) has issued a clarification.
According to NPCI, payment through UPI will remain free and easy even further. This will not affect the customers. It will be completely free as before. Earlier it was said in some media reports that from April 1, a fee of 1.1 percent will have to be paid on transactions above Rs 2000. UPI has the largest share in digital payments. This move would have dealt a big blow to UPI payments and this was a point of concern among the customers. However, NPCI has now clarified its position regarding this. The total share of bank account-to-account transactions is more than 99 percent.
8 billion payments through UPI every month
NPCI tweeted that about 8 billion transactions happen every month through UPI. Retail customers are getting the benefit of this. This facility will continue to be free of cost and no charges will be levied on account-to-account transactions. This means that UPI payments from Phonepe, Paytm, and Google Pay (Phonepe, Paytm, Google pay) will remain free as before.
Charges will have to be paid on PPI
NPCI has fixed the interchange charge, but it is imposed on the merchant category. Its range will be from 0.5 percent to 1.1 percent. Interchange from 0.5% to 0.7% will have to be paid on fuel, education, agriculture, and utility payments. Apart from this, the maximum interchange of 1.1 percent will have to be paid at food shops, and special retail outlets.
What is PPI
PPI i.e. Prepaid Payment Instrument is such a facility in which transactions up to Rs 10,000 can be done. In this facility, money is first put in like a proper recharge and it can be used to buy goods or send money to someone. NPCI has said that the interchange fee on similar payments will be charged from April 1. Now if more than Rs 2000 is paid through PPI, then a 1.1% fee will have to be paid.
