UPI Payment Charges : Transaction Fee for UPI Payments from April 01, 2023
Nevertheless, beginning on April 1, 2023, a fee of 1.1% of the transaction value will be charged when utilizing PPI on UPI for amounts over Rs 2,000.
With the advent of UPI, digital payment systems in the country have seen a dramatic transformation. The UPI network now includes everyone from mom-and-pop stores to multinational e-commerce corporations. UPI has seen unprecedented increase in the number of transactions processed annually. Most of us now prefer to use UPI while making purchases.
Nevertheless, beginning on April 1, 2023, a fee of 1.1% of the transaction value will be charged when utilising PPI on UPI for amounts over Rs 2,000. NPCI (India’s National Payments Corporation) has published a circular about UPI. Payments sent to merchants via UPI have been rumored to incur a prepaid payment instrument (PPI) fee.
What do I do, When my UPI Payment Gets Stuck or Transaction Fails?
Transaction Fee for UPI Payments from April 01, 2023
If the total amount is greater than $2,000, then a fee of
1. Reportedly stated in an NPCI circular, the interchange fee will be applied to any transaction above 2,000.
2. For UPI to PPI transactions over Rs.2,000, the total interchange charge will be 1.1% of the transaction value.
3. Prepaid Payment Instruments (PPIs) are now compatible with the UPI interoperable ecosystem, according to a news release from the NPCI.
5. While conducting PPI merchant transactions, the interchange fee is due. Sending money from one bank account to another does not incur any interchange fees.
On April 1, 2023, this new regulation will go into effect.
In addition, the National Payment Corporation of India will have its review meeting after this rule goes into effect, but before September 30, 2023.
