National Payments Corporation of India (NCPI) have cleared that there will be no interchange fee of 1.11% on (UPI) Unified Payments Interface transition of more than 2000.RS, Bank to bank transfer remains free for merchants and customers. All customers using UPI app or digital vallet can send and receive money through UPI for fee.
This clarification comes from NPCI after there was confusion in the heads of users and misinformation on internet regarding over the proposed interchange fee of 1.1% on UPI transactions over Rs 2000. NCPI said that new interchange charges are applicable only for (PPI) Prepaid payment instruments merchant Transaction.
Most popular method of UPI is by first linking your bank account into any UPI enabled app to continue to payments. This method contribute about 99% of UPI transaction in India. This bank account to bank account transaction remains free. It remains the most preferred mode as it is secure, easy to use, and provide seamless experience to customers. In every month around over eight billion Transactions are done by using UPI.
“Recent regulatory guidelines, the Prepaid Payment Instruments (PPI Wallets) have been permitted to be part of interoperable UPI ecosystem. In view of this NPCI has now permitted the PPI wallets to be part of interoperable UPI ecosystem. The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers,” said NPCI.
NPCI was established in 2008 to work as an umbrella organisation for retail payments and settlement system in India. NCPI have bring many innovation in retail payment system and work strongly towards transforming India into digital economy.