Any Unified Payments Interface (UPI) transactions of more than Rs 2,000 made vis prepaid payment instruments (PPI) like online wallets or pre-loaded gift cards, etc, will carry an interchange fee of up to 1.1 percent from April 1, 2023.The interchange fee is typically associated with card payments and is levied to cover the costs of accepting, processing and authorizing transactions.
Will customers be charges for UPI payments?
No. The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account-based UPI payment (i.e., normal UPI payments).
The move is said to be aimed at increasing revenue for banks and payment service providers, who are reportedly been struggling with the high cost of UPI transaction.
- CA Neha Vora
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