UPI transactions could get costlier from April 1; know reason
If you also often pay with Google Pay or Paytm, then this news may concern you. From April 1, 2023, UPI Transaction can be expensive. A circular related to Unified Payment Interface (UPI) payment has been issued by the National Payments Corporation of India (NPCI). In this, it has been recommended to impose ‘Prepaid Payment Instruments (PPI)’ charge on merchant transactions through UPI from April 1. This change will affect crores of people.
1.1 percent surcharge suggested
In the circular issued by NPCI, it has been suggested to impose a surcharge of 1.1 percent on transactions above Rs 2,000 from April 1. This charge will have to be given to the merchant transaction i.e. the customers paying the merchants. The transaction done through wallet or card comes in PPI. Interchange fees are usually associated with card payments. It is charged to accept transactions and cover costs.
It was said by the National Payments Corporation (NPCI) that it will be reviewed on or before 30 September 2023. Based on the circular of NPCI, from April 1, payments made through digital modes like Google Pay, Phone Pay and Paytm will become expensive. If you pay more than Rs 2,000, then you will have to pay more money in lieu of it.
A report has revealed that 70 percent of UPI transactions are of more than Rs 2,000. It was said in the circular of NPCI that after the implementation of the rule from April 1, it will be reviewed before September 30, 2023.
