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.
Prime Minister Narendra Modi has reached Greece on a one-day visit after the BRICS summit. Signif
South actor Vijay Sethupathi is in the headlines these days. A user on the social media platform
The five-match T20 series between India and England is scheduled to begin from January 22. Before
Father's Day 2023: Your gift will touch your father's heart, if you give this gift on Father's Day
Father's Day 2023 Gift Ideas: This year, Father's Day is being celebrated worldwide on 18 June. F
Due to heavy rains in the capital Delhi on Friday, a major accident occurred due to the collapse
Citizenship Amendment Act: The petitions filed against the Citizenship Amendment Act will be hear
Earthquake in Delhi NCR: There was an earthquake in Delhi-NCR on Tuesday afternoon. Although peop
There was a stir in the Tamil film industry when the news of the tragic death of well-known stunt
Sanjay Roy, the beast who raped and murdered a female doctor at RG Kar Medical College, will rema
Air pollution levels in the national capital, Delhi, continue to remain alarming. According to th
