A recent circular from the National Payments Corporation of India (NPCI) suggested PPI charges to be applicable on merchant transactions on UPI from April 1.
Using Prepaid Payment Instrument (PPIs) on UPI from will attract interchange at 1.1 percent on transaction value for amounts over Rs 2,000.
The PPI issuer will pay about 15 basis point as a wallet-loading service charge to the remitter bank and an interchange is not applicable in terms of peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions between bank account and PPI wallet.
Introduction of interchange is in the range of 0.5-1.1 percent, with interchange being 0.5 per cent for fuel, 0.7 per cent for telecom, utilities/post office, education, agriculture, 0.9 per cent for supermarket and 1 per cent for mutual fund, government, insurance and railways.
The interchange fee is typically associated with card payments and is levied to cover the costs of accepting, processing, and authorising transactions.
The pricing will come into effect starting April 1, 2023. NPCI will review the stated pricing on or before Sept. 30, 2023, the circular said.
From UPI 123Pay to UPI-PayNow linkage, such new developments in UPI are redefining the payment infrastructure and tramsforming the digital payment space.
I am a mon cable business
ahamedariyan258@gmail.com
Government is asking to adopt digital payments, and on other hand all types of charges are levied on these transactions.
Do some research its nkt the person paying intercharge of 1.1% its the merchant.