UPI Transaction Charges From 1 April 2023?

UPI Transaction Charges From 1 April 2023: Do you know how much additional charges will be charged on UPI payments from April 1? Yes! You are listening right. Free UPI payments are going to stop after April 1.

UPI Transaction Charges

The National Payments Corporation of India (NPCI) has clarified whether UPI will be free for consumers and merchants to transfer money from bank account to other account. If you are using UPI, you must know that there are big changes coming to various UPI apps from April 1. Earlier there was no charge for making payments through UP applications such as google pay, phone-pe, paytm etc. But recently a fee has been levied for transactions through UPI.

UPI Transaction Charges From 1 April 2023

From April 1st, additional charges will be paid for transactions through UPI (Unified Payment Interface). NPCI has suggested levying prepaid payment instrument or PPI fees on transactions. According to reports, PPI is considering levying a PPI fee on UPI payments above Rs 2,000. In this case a transaction charge of 1.1% of the transaction amount will be implemented.

EPF payments have many advantages. Many do transactions by linking bank accounts to UPI enabled apps to send money to different accounts. Such applications contribute 99.9 percent in this regard. NPCI continues these bank account to account transactions free of charge for consumers and merchants.

How much UPI Transaction Charges From 1 April 2023?

UPI Transaction Charges From 1 April 2023 will be payable for transactions through UPI from April 1 onwards. But let’s know how much will be charged in the transaction and to whom these rules apply. According to NPCI, 1.1% will be charged for UPI transactions above 2000 rupees.

An additional 1.1 percent will be charged above Rs 2000. But there is ambiguity about this rate in several cases. For example, in the case of a transaction of Rs 3000, whether 1.1 percent will be charged only on Rs 1000 or 1.1 percent will be charged on the entire Rs 3000, it is not yet clear.

For whom UPI Transaction Charges From 1 April 2023?

But here you have no reason to worry. NPCI informed that this UPI Transaction Charges From 1 April 2023 applicable only for PPI commercial transactions. There is no charge for customers. Because this fee will not be applicable for peer to peer (P2P) and peer to merchant (P2M) transactions between bank account and PPI wallet.

In simple words, if a businessman or individual transacts money online directly from the bank account, then no charge will be taken for it. If using a UPI wallet, a 1.1 percent charge will be charged on transactions exceeding Rs. 2,000.

Recently, 70 percent of UPI transactions are over Tk 2,000, which means that big merchants are going to suffer a lot under this new rule, which is needless to say. Nowadays many people use UPI applications like google pay, phonepe, paytm, currently Phone-Pe is the most used UPI platform in the country. This application has 67 million active users across the country.

In a tweet, NPCI informed customers that there will be no additional charges for customers to make UPI payments from bank accounts to other bank accounts, as is the case with normal UPI payments. This additional charge applies only to prepaid payment instrument PPI merchant transactions.

Rajshree Rengan, India Head of Development Banking and Payments, FIS informed that this new step of prepaid payment instrument by NPCI is a significant step towards creating a seamless digital payment ecosystem across India.

He added that payment systems with the largest interoperability will improve the relationship that consumers transact with merchants, thereby increasing the adoption of digital payments and ultimately driving financial inclusion and economic growth. This move will encourage innovation in the digital payments space. Competition will increase and improve the quality of service offered to customers.

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