People who make their daily payments using Unified Payments Interface (UPI) transactions were greatly perplexed by the National Payments Corporation of India (NPCI)’s recent announcement. The question of whether UPI payments will now incur a fee or not caused confusion.
In accordance with the most recent NPCI announcements, UPI transactions will now incur an additional fee. Additionally, the company clarified which UPI transactions will now be subject to an intercharge and which will be free.
According to the NPCI, rather than relying on wallet payments, users of UPI payment applications such as Google Pay, Paytm, BharatPe, and others prefer to link their bank accounts with their UPI accounts.
The NPCI clarified that “UPI is free, fast, secure, and seamless” after the announcement caused confusion among UPI users. In the meantime, certain types of UPI transactions will incur a fee. All you need to know about the new rule change is in this article.
UPI payment charges explained: Know NPCI’s new rule
According to the NPCI’s announcement, customers and merchants will still be able to make free UPI payments for bank account-to-account transactions. This means that there will be no fees associated with using UPI to transfer funds to a bank account.
In addition, the NPCI advised that Prepaid Payment Instruments (PPI) will be subject to a modest intercharge. This means that there will be a small fee associated with customer-to-merchant transactions. However, the merchant will bear this cost, not the customer.
If the transaction exceeds Rs 2000, UPI payments made through PPI, such as Paytm wallets and digital wallets, will now incur a fee of Rs 1.1. The merchant, not the customer, will be responsible for this intercharge. There will be no additional fees for wallet transactions under Rs 2000.
Payments made through UPI applications from one bank account to another will not incur any additional fees. It should be noted that the merchant has the option of passing on the Rs. 1.1 transaction fee to the customer for wallet transactions.
