There is no fee in normal UPI payment; Interchange Fees Applicable to PBI Business Transactions: NPCI
National Payments Corporation of India (NBCI) on Wednesday said there will be no bank account charges for bank account-based UPI payments or normal UPI payments. However, NPCI has clarified in a statement that the interchange charges are applicable only for business transactions for Prepaid Payment Instruments (PPI) and there is no charge to customers.
NPCI Press Release: UPI is free, fast, secure and seamless
Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts@EconomicTimes @FinancialXpress @businessline @bsindia @livemint @moneycontrolcom @timesofindia @dilipasbe pic.twitter.com/VpsdUt5u7U
— NPCI (@NPCI_NPCI) March 29, 2023
NPCI has allowed PPI wallets to be part of the functional UPI ecosystem and charged 1.1 percent on Unified Payment Interface (UPI) transactions above Rs 2,000 while using PPI.
“It is further clarified that the introduced transaction charges are applicable only for PBI business transactions and there is no charge for customers and no charges for bank account based UPI charges (i.e. normal UPI charges).” It said.
In addition to UPI, customers can use any bank account, RuPay credit card and prepaid wallets in UPI-enabled apps, it said.
In recent times, UPI has emerged as the preferred mode of digital payment by providing a free, fast, secure and seamless experience.
Traditionally, the most preferred mode of UPI transactions is linking a bank account to a UPI-enabled app for payment, which accounts for over 99.9 percent of total UPI transactions.
Account transactions from this bank account will continue to be free for customers and merchants.