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The NPCI has proposed an interchange fee of up to 1.1 per cent and the move is aimed at increasing revenue for banks and payment service providers.
In Short
NPCI has recommended interchange fee on UPI for transactions over Rs 2000 made through Prepaid Payment Instruments (PPIs)
This means some of the digital wallet transaction will incur a fee.
The NPCI has proposed an interchange fee of up to 1.1 per cent.
By Ankita Chakravarti: The National Payments Corporation of India (NPCI) has recommended an interchange fee on Unified Payments Interface (UPI) transactions of over Rs 2,000 made through Prepaid Payment Instruments (PPIs). The move is said to be aimed at increasing revenue for banks and payment service providers, who are reportedly been struggling with the high cost of UPI transactions. The fee will be charged from April 1 and the interchange pricing will be reviewed by September 30, 2023.
Update: The earlier version of the story had a headline that said: “UPI transactions of more than Rs 2,000 to be charged at 1.1 per cent starting April 1, all details”. However, this is not the case. As NPCI clarified, the fee of 1.1 per cent will not be charged on UPI payments but only on payments of Rs 2000 or higher made from digital wallets to UPI IDs.
