The National Payments Corporation of India (NPCI) has issued a circular in which it suggested “Prepaid Payment Instruments (PPI)” fees on merchant transactions on Unified Payments Interface (UPI). Gpay, Paytm others UPI transactions costly now: Govt put extra charge.
The governing body of the Gpay, Paytm others UPI transactions system added that the PPI fees would be levied on transactions above Rs 2,000 on UPI. It will result in an interchange at 1.1% of the transaction value. The interchange fee is levied to cover the costs of accepting, processing, and authorising transactions.
This is likely to make the transaction costlier. The new rule will be implemented from 1 April. The issuer of prepaid instruments will also be required to pay 15 basis points of the fee to the remitter bank for loading a transaction value above Rs 2,000, the circular said.
Notably, the fee will not be applicable to person-to-person transactions or person-to-merchant transactions between a bank and the prepaid wallet. The National Payments Corporation of India (NPCI) has advised Prepaid Payment Instruments (PPI) fees be applied to merchant transactions on Unified Payments Interface (UPI) beginning on April 1 in a recent circular.
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