UPI Payment: UPI payment will be expensive from April 1! This much extra charge will have to be paid on a transaction of Rs 2000

UPI Payment Charges From 1st April: If you use UPI to make online payments, then there is great news for you. From April 1, a charge will have to be paid on payment through Gpay, Phonepe, Paytm. National Payments Corporation of India NPCI has issued a circular suggesting prepaid payment instruments PPI charges on merchant transactions on Unified Payments Interface UPI.

NPCI reportedly said that PPI charges will be levied on transactions above Rs 2000 on UPI. This would result in an interchange at 1.1 per cent of the transaction value. Explain that the interchange fee is levied to cover the cost of accepting, processing and authorizing the transaction. This is likely to make transactions costlier. The new rule will come into force from 1 April.

According to reports, this announcement was made through a circular of NPCI on 24th March. It said that additional charges will have to be paid by those users who are making payments to merchants on the UPI network through wallets. An interchange fee is a fee charged by one bank to another bank for processing a transaction. Notably, the fee will not be applicable for person-to-person transactions or person-to-merchant transactions between the bank and the Prepaid Wallet.

Now the question arises whether users will be charged for UPI transactions? The answer is no. Users will not have to bear the brunt of NPCI’s new order. The new charge on UPI transactions will be applicable only to merchants who accept payments above Rs 2000 using PPIs, prepaid payment instruments such as mobile wallets. The review of interchange pricing will be done by 30 September 2023.