The National Payment Corporation of India (NPCI) has clarified via Twitter that UPI transactions will not incur fees for customers. However, Prepaid Payment Instruments (PPI) like wallets and credit cards will be subject to interchange fees of 1.1%.
Bank-to-bank UPI transfers, on the other hand, will continue to be free for both merchants and customers. Customers will now be able to use any bank account, Rupay Credit card, and prepaid wallets on UPI-enabled apps, according to the NPCI’s tweet.
UPI has emerged as the preferred method of digital payment due to its free, quick, secure, and seamless experience. The most prevalent method of UPI transactions, accounting for over 99.9% of all UPI transactions, is linking a bank account in any UPI-enabled app. Customers and businesses can still conduct these free transactions from one bank account to another.
PPI wallets can now be a part of the interoperable UPI ecosystem thanks to new regulations. In response, the NPCI has made it possible for PPI wallets to be a part of the UPI ecosystem. However, PPI merchant transactions will only be subject to interchange fees.
Customers will not be charged to use UPI, and bank-to-bank account UPI payments will continue to be free, according to the NPCI.
Customers are reassured by the clarification provided by the NPCI that UPI continues to be a cost-free and readily available digital payment option. Customers now have more options for making payments on UPI-enabled apps using any bank account, Rupay Credit card, and prepaid wallets thanks to the addition of PPI wallets to the UPI ecosystem.
