From April 1, 2023, people will have to pay extra charges for making payments through UPI! This news spread like a wild fire and it started being discussed on all social media platforms. The general public started calling it inflation and started cursing the government. People started sending WhatsApp messages that UPI transactions above Rs 2,000 would attract 1.1 per cent charge. In today’s era, when UPI is scanned even for Rs 10-20, the extra charge on UPI payment is really surprising. Realizing the situation, NPCI had to come forward and clarify that in reality, who will have to pay extra money for UPI payment and why. You will be able to read all this information in the next article.
NPCI Press Release: UPI is free, fast, secure and seamless
Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts@EconomicTimes @FinancialXpress @businessline @bsindia @livemint @moneycontrolcom @timesofindia @dilipasbe pic.twitter.com/VpsdUt5u7U— NPCI (@NPCI_NPCI) Mar 29, 2023
UPI charge news
There has been news about UPI payment that it will no longer be free and 1.1% charge will have to be paid on payment of more than 2 thousand. Extra money will have to be paid for making transactions through digital wallets like Paytm, Phone Pay and Google Pay. This is true, but there is no need to take tension. If you link UPI payment with bank account, then you have not suffered any loss. This extra charge will not be applicable on UPI but only on PPI.
What is PPI payment
The full form of PPI is Prepaid Payment Instrument. In UPI payment where all the money from one bank account goes to another bank account, in PPI payment the money does not go from bank to bank but from app to bank. Explain in simple words, if you keep money in your payment app’s wallet and then scan the QR code and send that money through UPI to another person’s account, then it comes under the category of prepaid payment instrument. Companies like Paytm and PhonePe offer the option of PPI.
What is UPI payment
The full name of UPI is Unified Payments Interface. Which is operated by NPCI i.e. National Payments Corporation of India. In UPI payment, money is withdrawn from one bank account and goes to another bank account. UPI transaction can be done through any app platform. UPI ID or UPI QR code is required for successful payment. Also Read: How to Change UPI PIN? The easiest way to go here, work will be done in a jiffy
On which payment will the money be spent?
As per the proposal of NPCI, PPI transactions may have to pay extra charges. If UPI payment is made through any digital wallet or through credit card, then interchange fee may have to be paid for such transactions. The maximum charge in this can be 1.1 percent of the amount paid. This charge will be applicable only if the payment is made more than Rs 2,000. Make it clear here that whatever extra charges it will have to be paid by the merchant receiving the payment and not by the payer.
The interchange fee for UPI payments made through payment apps will start from 0.5 percent and this interchange charge will be applicable only after April 1. According to the details revealed, the account holder making PPI payment on the purchase of petrol and diesel may have to pay an additional fee of 0.5 percent. Similarly, 0.7 percent can be charged for telecommunications, post office, education and agriculture, 0.9 percent for supermarkets and 1 percent for mutual funds, government, insurance and railways.
Which UPI payment will be free?
According to the circular issued by NPCI, no additional charges will be levied on peer-to-peer and peer-to-peer-merchant transactions between bank accounts and prepaid payment instruments (PPIs). This new rule will not apply to P2P and P2M transactions. That is, if you pay by scanning the UPI QR Code or withdrawing money directly from your bank by entering the UPI ID, then it will be completely free as before.
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