UPI payments will also have to pay extra, new rules will come into effect from April 1

• March 29, 2023

Gpay, Phonepe, Paytm - UPI App one after the other has practically made us forget to keep cash in the wallet. But, till now, the user does not have to pay any extra money to make payment through UPI App. But now that the rules are coming, many things can change.

Recently a circular has been issued by National Payments Corporation of India (NPCI). Where said prepaid payment instruments i.e. PPI fee is payable in case of transaction on Unified Payments Interface or UPI. What does this guide mean? So, if you want to do transactions through UPI, you have to pay from now on?

How much money will be given or how much extra will it cost? It is learned that this surcharge may be added for the services of the concerned bank instead of the services of sending, receiving, etc. In that case, the transaction is likely to be more expensive. The new rules will be effective from April 1.

Issuers of prepaid instruments will have to pay a fee of 15 basis points to the remitting bank for transactions above ₹2,000, the circular said. 1.1% will be charged on transactions above 2000 rupees in UPI payment system. The rate of surcharge will be determined according to different industries and types of business. However, this surcharge may be less in agriculture and telecom sectors. NPCI will review this levy surcharge on or before September 30. Notably, this fee will not apply to person-to-person transactions or person-to-business transactions through banks and prepaid wallets. This surcharge will be applicable only on merchant to merchant transactions.

Share on Social Media