The National Payments Corporation of India (NPCI), in a recent circular, has advised that charges be levied on prepaid payment instruments (PPIs) transacted on the Unified Payments Interface (UPI). However, NPCI has issued a release and clarified that UPI will continue to be free for general customers, who will do account-to-account transactions.
How will the proposed charge be given for spending more than 2000 on the transaction?
UPI governing body NCPI in a circular said that using PPI on UPI for an amount above Rs 2,000 will attract a fee of 1.1 percent of the transaction value. Interchange fees are typically associated with card payments and are levied to cover the cost of accepting, processing, and authorizing transactions. However, based on this circular, NPCI clarified the position after the news of the levy of charges on UPI came into the media. NPCI has issued a statement saying that 99.9% of transactions under UPI are from one bank account to another. Such transactions will not be affected by the proposed fee. General customers will not have to pay any kind of fee.
Up to what percentage fee can be paid on PPI transactions?
It has been proposed to levy a fee of 0.5-1.1 percent on merchant-to-merchant transactions under PPI. This includes 0.5 percent interchange for fuel, 0.7 percent for telecom, utilities/post office, education, agriculture, 0.9 percent for supermarkets, and 1 percent for mutual funds, government, insurance, and railways. These charges will be applicable from April 1, 2023. NPCI's circular said that it will review the announced pricing on or before September 30, 2023.
What percentage of people will be affected by the proposed new charges on UPI transactions?
NPCI's circular indicates that from April 1 onwards, you may have to pay additional charges for UPI payments i.e. Google Pay, Phone Pay, and Paytm for payments above Rs 2,000 using PPIs. Although such transactions currently account for only 0.1 percent of the total transactions under UPI, they will not have any impact on general customers. Let us tell you that in the last few months, indications were given many times by the government that UPI will remain free. UPI payments are playing a vital role in the digitization of the Indian economy. In such a situation, it can be adversely affected due to the levy of charges on UPI transactions.
How many rupees were transacted through UPI in 2022-23?
Only last week, the Union Finance Ministry informed the Parliament that in the financial year 2022-23, transactions worth more than Rs 125 crore have taken place through the Unified Payments Interface (UPI). During this, more than 95 thousand people have also become victims of fraud. It is a matter of concern that the number of victims of fraud has been increasing over the last three years. Statistics show that 77 thousand people in 2020-21 and 84 thousand people in 2021-22 were victims of fraud during UPI transactions. The ministry said that the Indian digital payment system has also found global acceptance. Countries like Singapore, UAE, Mauritius, Nepal, and Bhutan have also adopted it.
What has NPCI said by issuing the release?
On the news of UPI transactions being charged from April 1, NPCI issued a release on Wednesday to clear the situation. NPCI has said in the release issued on Wednesday that the Unified Payments Interface (UPI) will remain free, fast, secure, and seamless. Through this, more than 8 billion rupees in transactions are done every month for users and merchants using bank accounts free of cost. PPI charge will be levied. The press release states that bank-account-to-bank account transactions done between the customer and the merchant will continue to be free.
What is PPI on which charges will be levied?
PPI (Prepaid Payment Instruments) is a financial instrument in which you can put money in advance and use it in the future. Goods and services can be purchased with this stored money. Money can also be sent from the PPI to a friend or relative, etc. At present, there are three types of PPIs working in the country. These are Semi-Closed System PPI, Closed System PPI, and Open System PPI. PPIs can be issued in the form of cards and mobile wallets. Major companies providing payment wallet facilities in the country such as Paytm, PhonePe, and Google Pay provide services related to such PPIs.
Where to get a PPI card?
PPIs are issued by banks and non-banking entities. PPIs can be loaded and issued in a card or electronic form as per RBI provisions. It can be recharged with money lying in bank accounts. This PPI can be used for the purchase of goods and services. The remaining money cannot be transferred to the account again.
Pakistan cricket team captain Mohammad Rizwan accepted the crushing defeat from India. During the
Time will tell who bears the brunt of the NCERT's decision to teach children only controversial c
Boney Kapoor: Boney Kapoor met CM Yogi, the film producer's company will build a 'Film City'
Film producer Boney Kapoor has met Uttar Pradesh Chief Minister Yogi Adityanath. Boney Kapoor pos
Severe cold has started falling all over North India, meanwhile, snowfall in the mountains has in
The Indian women's team achieved a historic victory on Sunday, winning the ODI World Cup for the
Currently, if there's one Bollywood actor who's making the most headlines, it's Akshaye Khanna. H
Amidst the Lok Sabha elections, there is political turmoil regarding inheritance tax (division of
After heavy rain on Wednesday night in Delhi and NCR, light rain continued on Thursday as well. E
Terrorists have attempted to infiltrate the Line of Control under District Kupwara in North Kashm
A video of a man brutally beating a couple in the middle of the road in West Bengal has gone vira
