The National Payments Corporation of India (NPCI) in a recent circular, recommended an interchange fee on Unified Payments Interface (UPI) transactions beginning April 1.
In a circular by the NPCI, the governing body of UPI, stated that using PPIs on UPIs will result in interchange at 1.1 per cent of the transaction value for amount greater than Rs 2,000.
The costs of accepting, processing, and authorizing transactions are covered by the interchange fee, which is typically incurred when making payments with a credit or debit card.
The PPI issuer will pay the remitter bank approximately 15 basis points as a wallet-loading service charge for peer-to-peer (P2P) and peer-to-peer merchant (P2PM) transactions between a bank account and a PPI wallet.
Fuel accounts for 0.5 per cent of interchange, followed by 0.7 per cent for telecom, utilities/post offices, education, agriculture, 0.9 percent for supermarkets, and 1 per cent for mutual funds, the government, insurance, and railways.
The valuing will become effective beginning April 1, 2023. The circular also stated that NPCI will review the state pricing by September 30, 2023.
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