News Daily Digital Desk: Transactions through UPI have become increasingly popular. There will be a significant modification in the UPI transaction rules this time. The National Payments Corporation of India (NPCI) has informed that additional charges will have to be paid on transactions above Rs 2000 through prepaid payment instruments or PPIs. This is the demand of the All India Press.
How much interchange fee should I pay?
It is known that this charge will be from 0.5 percent to 1.1 percent. However, this new rule is not applicable in case of transactions between two individuals or an individual with an organization through a bank.
In this regard, a notification was presented by NPCI on Wednesday itself. It added that in case of Telecom, Education and Post Office, an interchange fee of 0.7 per cent of the transaction amount would be applicable. Whereas, in the case of supermarkets, this fee is 0.9 per cent. It is 1 per cent for insurance, government, mutual funds and railways. A fee of 0.5 percent will be imposed on energy transactions and 0.7 percent on agriculture.
However, in all cases it is known that the fee will have to be paid in case of a transaction of at least Rs 2,000. Incidentally, the popularity of UPI is increasing day by day. Interest in digital transactions is gradually increasing through ‘PhonePe’, ‘Zeepay’, ‘WhatsApp Pay’ and ‘Amazon Pay’.
The NPCI will review the pricing on or before September 30, 2023.
In August of last year, the Finance Ministry stated that UPI is a digital public good and that no fees would be levied on transactions made through it. “UPI is a digital public good that provides enormous convenience to the public while also increasing economic productivity.” The government is not considering charging for UPI services. “Other means must be used to address service providers’ concerns about cost recovery,” the ministry tweeted.
The statement came after the RBI issued a discussion paper in which it stated that UPI, as a fund transfer system, is similar to IMPS (Immediate Payment Service), and thus charges in UPI could be similar to those levied on IMPS fund transfers.
Know About UPI
Unified Payments Interface (UPI)
The Unified Payments Interface (UPI) is a system that integrates multiple bank accounts into a single mobile application (of any participating bank), combining multiple banking features, seamless fund routing, and merchant payments under one hood. It also handles “Peer to Peer” collection requests, which can be scheduled and paid according to need and convenience.
In light of the foregoing, NPCI conducted a pilot launch with 21 member banks. Dr. Raghuram G Rajan, Governor of the Reserve Bank of India, launched the pilot program in Mumbai on April 11, 2016. Banks began uploading their UPI-enabled apps to the Google Play store on August 25, 2016.
What makes it unique?
- Immediate money transfer via mobile device 24 hours a day, 7 days a week.
- A single mobile app for accessing multiple bank accounts.
- Single Click 2 Factor Authentication – Complies with regulatory guidelines while providing a powerful feature of seamless single click payment.
- The customer’s virtual address for Pull and Push provides additional security because the customer is not required to enter details such as card number, account number, IFSC, and so on.
- The QR Code is the best solution to the hassle of Cash on Delivery, running to an ATM, or rendering exact amount.
- Payment from a merchant via a single application or in-app payments.
- Utility bill payments, in-person payments, and payments based on QR codes (Scan and Pay).
- Donations, collections, and disbursements are all scalable.
- Directly filing a complaint through the mobile app.
Highlights on Upi transactions charge
- There is going to be a big change in the UPI transaction rules. The National Payments Corporation of India has informed that additional charges will have to be paid for transactions above Rs 2000 through Prepaid Payment Instruments or PPIs.
- It is known that this charge will be from 0.5 percent to 1.1 percent.
- However, this new rule is not applicable in case of transactions between two individuals or an individual with an organization through a bank.