If you use PPI (Prepaid Payment Instruments) to make UPI payments in India, you will be required to pay a fee of 1.1% on all transactions above Rs 2,000 beginning 1st April.
Beginning on 1st April, all merchant transactions made via UPI (Unified Payment Interface) will be subject to Prepaid Payment Instruments (PPI) fees from the National Payments Corporation of India.
Overview
According to reports, the recommendation has already been made public via a recent circular, and the NPCI will review the charges by 30th September 2023 or earlier. Prepaid Installment Instruments incorporate internet-based wallets like Amazon Pay, prepaid gift vouchers, etc. Even though the maximum amount for a transaction has been set at 1.1%, not all transactions over Rs 2,000 will be charged the same percentage.
The presentation of trade is in the scope of 0.5 percent to 1.1 percent. For instance, users will be charged 0.5% for fuel purchases made through UPI, 0.7% for telecom, utilities/post offices, education, and agriculture, 0.9% for supermarkets, and 1% for mutual funds, the government, insurance, railways, and mutual funds.
UPI does not charge a merchant discount rate (MDR); however, it is set for processing debit and credit card transactions. For instance, UPI charges Rs. 2 for each Rs. 800 transactions. On the other hand, retailers with ticket items exceeding Rs 2,000 will not be pleased, and these fees will ultimately be passed on to the customer.
End Note
The NPCI will review the new structure before 30th September this year, as previously mentioned; however, until then, the new system will be used for all UPI transactions conducted in India.
| Click Here For More News and Blog |
